In February 2026, the US Supreme Court ruled that IEEPA tariffs are unlawful. Here is a clear explanation of whether the money already paid can be refunded, and how.
What Happened
On February 20, 2026, the US Supreme Court ruled 6:3 that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs.
The "fentanyl tariffs" and "reciprocal tariffs" previously imposed under IEEPA were found unlawful, and refunds were ordered.
Who Can Apply
The importer of record that has paid the relevant IEEPA tariffs is the party eligible to apply for a refund.
Chinese exporters are generally not the US importer of record, so the actual application is usually made by the US importer or its customs broker.
So what Chinese sellers need to do is: confirm with the US importer and customs broker who paid the tax and whether a refund can be claimed.
CBP's Refund Channel
US Customs and Border Protection (CBP) launched the CAPE refund process on the ACE portal on April 20, 2026, with a CSV entry list upload and interest included in the refund.
Submissions go through the ACE portal and require data such as entry numbers. For specific materials and formats, refer to CBP announcements.
What Companies Should Do Now
First, take stock of all entries on which IEEPA tariffs were paid before February 2026.
Second, confirm the tax payment records and the declaring party with the importer and customs broker.
Third, follow up on the eligibility conditions and timing requirements of the CAPE process.
Refunds Are Not Automatic
Refunds usually require an active application and will not arrive automatically.
Entry numbers and tax payment evidence must be kept complete.
When sellers, importers and customs brokers are all involved, clarify the allocation of responsibility and benefits in advance.
Which Documents to Keep
Entry number: the CAPE process requires submission by entry list, and this is the most critical index.
Tax payment evidence: proof that the IEEPA tariff was actually paid.
Correspondence records: communications with the importer and customs broker regarding tax payment and refunds.
It is recommended to build a table entry by entry, noting the product, amount and tax payment date.
Three Common Questions
Question 1: Can sellers apply directly to CBP themselves? Generally no, it must be handled by the importer of record.
Question 2: Is the full tariff refunded? Only the IEEPA portion ruled unlawful.
Question 3: How long until the money arrives? Subject to CBP and actual review progress, with no fixed commitment.
Where Tariffs Go Next
After IEEPA was struck down, the US side instead invoked Section 122 of the Trade Act of 1974 to impose a 10% temporary tariff, effective February 24, 2026, valid for 150 days until July 24, 2026.
From July 24, 2026, it is replaced by the "forced labor tariff" under Section 301, at 10% for most countries and 12.5% for 46 economies including China.
Note: refunds apply only to the IEEPA tariffs ruled unlawful; Section 301, 232 and others remain in effect.
China's Official Position
China's Ministry of Commerce stated that the US unilateral tariff increases violate World Trade Organization rules and harm the interests of businesses and consumers in both China and the US, and that China firmly opposes them and will take necessary measures to safeguard its legitimate rights and interests.
Policy changes are frequent; refer to the latest official announcement.
