Potential Tariff Refunds – Action May Be Required by December 15
On Friday, November 28, 2025, Costco filed a lawsuit in the U.S. Court of International Trade challenging the administration’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The suit seeks a full refund of tariffs paid, arguing that the tariffs were not lawfully enacted.
This development comes as the U.S. Supreme Court is considering whether the IEEPA authorizes the President to impose such tariffs. During oral arguments on November 5, several justices raised questions about the scope of presidential authority under the statute. The Court agreed to hear the case on an expedited basis, and a decision is expected in late December 2025 or early January 2026.
If the Supreme Court ultimately rules that the tariffs are invalid, importers may have the opportunity to request refunds. However, the specific process for seeking refunds has not yet been determined.
U.S. Customs generally finalizes (“liquidates”) entries approximately 314 days after the date of entry. For entries made in February 2025—when the IEEPA tariffs were first implemented—this 314-day period falls around December 15, 2025. To preserve the right to potential refunds, importers may need to act before their individual entry liquidation dates. Under current rules, once an entry is liquidated, importers have 180 days to file a protest. These considerations may ultimately be unnecessary if the Supreme Court rules in favor of the government or limits any relief to prospective application only.
To preserve rights to potential tariff refunds, importers may need to act before their specific entry dates liquidate. Current rules provide that once an entry is liquidated importers have the right to file a protest within 180 days.
We will continue to monitor these developments and provide updates as more information becomes available.
The information provided in this alert is for informational purposes only and is based on current tax laws and regulations at the time of publication. It should not be construed as legal, tax, or financial advice. While we strive to ensure accuracy, tax laws are subject to change, and individual circumstances may vary. Please consult with your legal or WG tax advisor before making any decisions based on the information provided. WilkinGuttenplan is not responsible for any errors or omissions, nor for any actions taken based on this content.
