As of late May 2026, refunds of the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are actively flowing — even as the courts press U.S. Customs to account for how, and when, the full amount will be repaid. The Supreme Court earlier struck down the sweeping IEEPA duties as unlawful, and attention has now shifted from whether refunds are owed to how quickly importers will actually receive them.
Refunds Are Flowing
UPS has begun processing tariff refunds for eligible shipments, working directly with U.S. Customs and Border Protection (CBP). The repayments cover IEEPA-based duties paid on 2025 imports, and where a carrier served as the importer of record it may retrieve refunds on behalf of the shipment. For Canadian and U.S. businesses that paid these duties, this is the first concrete sign that recovery is moving from policy to practice.
The Courts Are Watching
The repayment effort remains under close judicial scrutiny. A U.S. trade court ordered the head of Customs to appear at a hearing to address the agency’s compliance with refunding the tariffs. The pressure stems from concern about repaying the full amount owed — estimated at roughly $166 billion in duties collected under the measures now found unlawful.
At the same time, the administration has told a court that it wants to delay repaying the tariffs, leaving the overall timeline uncertain as the litigation continues. The result is a fluid situation: refunds are real and underway for some shipments, but the broader schedule for repaying the full sum is still being contested.
What This Means for Importers
- Refunds are real but staged. Eligible shipments are already being processed, yet there is no fixed timeline for repaying the full amount collected.
- Preserve documentation. Keep entry summaries, duty payment records, and importer-of-record details organized to support any pending or future refund request.
- Expect a fluid timeline. With the administration seeking delays and a court demanding answers, procedures and dates may shift as the dispute proceeds.
- Track pending CAPE requests. Importers with refund requests in progress should monitor their status closely and respond promptly to any CBP guidance.
NGB can help clients identify and track potentially refundable entries, organize the supporting documentation, and stay current as CBP guidance and the underlying litigation develop. If your business has a pending refund request or paid duties on U.S. imports under the IEEPA measures, now is the time to confirm your records are in order.
