The U.S. Court of International Trade has cleared the way for a class-action lawsuit against tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This move could allow a broader range of businesses to seek refunds for tariffs deemed illegal by the Supreme Court in February.
In a slip order issued Thursday, the court certified a class of importers who paid these tariffs between February 1, 2025, and February 19, 2026. Excluded from this class are those who have already filed separate lawsuits, of which there are over 4,000 to date.
Refunds and Legal Hurdles
Following the Supreme Court’s ruling, the Court of International Trade ordered Customs and Border Protection (CBP) to refund the approximately $166 billion collected under the invalidated tariffs. So far, CBP has paid out over $100 billion through its Consolidated Administration and Processing of Entries (CAPE) portal.
Despite this progress, the court noted that many small importers have not utilized CAPE due to the associated costs, effort, or lack of awareness. The court’s certification aims to ensure all affected importers have a pathway to reimbursement. Without class action, an estimated $30 billion in IEEPA tariffs would remain unrefunded.
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However, several legal hurdles remain. The court has scheduled a closed conference for October 13 and set a deadline of October 22 for proposed scheduling of additional filings in the class-action suit.
Broader Implications and Ongoing Appeals
James Kim, an international trade partner at ArentFox Schiff, noted in a LinkedIn post that the decision does not immediately expand refund eligibility or direct payment. However, it creates a potential path for non-litigants to receive refunds without pursuing individual lawsuits.
Meanwhile, the Justice Department is appealing the order requiring CBP to refund all finally liquidated entries. The department argues that the court lacks jurisdiction to mandate such reimbursements for importers who have not filed lawsuits. This appeal remains pending in federal court.
