The U.S. Supreme Court’s recent decision striking down certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) has opened the door for many U.S. small businesses to seek refunds. However, determining whether your business qualifies—and understanding what steps to take next—can be challenging.
While we will learn more about the refund process in the days ahead, this guide provides information to help small businesses identify whether they paid IEEPA‑based tariffs, understand what types of duties may be eligible for refunds, and prepare for the emerging refund process.
Watch: What the Supreme Court Decision Means for Small Business
Do I qualify for a refund?
U.S. importers of record who directly paid the tariffs or the person who takes ownership of the goods once they have cleared customs (the “consignee”) may be eligible for a refund.
Businesses that did not directly pay the tariffs are not eligible for a refund.
Refunds are only available for tariffs applied under the International Economic Emergency Powers Act (IEEPA). This includes tariffs commonly known as “fentanyl,” “trafficking,” “reciprocal,” or “baseline” tariffs, as well as some other tariffs applied to goods from Brazil and India.
Refunds are not available for so-called Section 232, Section 301, Section 201, anti-dumping and countervailing duties (AD/CVDs), or most-favored nation (MFN) tariffs. To determine the legal authority under which tariffs you have paid were applied, consult your customs broker, counsel, or government sources.
What is the refund process?
The process for obtaining tariff refunds remains uncertain. We expect to learn more from the courts and from the administration in the days ahead.
The U.S. Chamber of Commerce is closely tracking the treatment of tariffs issued under the International Emergency Economic Powers Act (IEEPA) and struck down by the U.S. Supreme Court.
More information can be found here as it becomes available. Visit the U.S. Chamber's Tariffs page and track case updates here.
What questions should I ask a customs broker?
Customs brokers provide invaluable services for small businesses engaged in international trade and will be the front line for small businesses seeking tariff refunds. When working with a customs broker, you should ask:
- What tariffs did I pay that were assessed under IEEPA?
- What records do I need to provide to substantiate a tariff refund?
- What specific records must be assembled (entry summaries, ACE reports, invoices, classifications, country-of‑-‑origin support) to calculate refund amounts?
Caution: There will likely be scammers and fraudsters who try to take advantage of the confusion over tariff refunds after the U.S. Supreme Court’s decision. Please only work with well-established, legitimate customs brokers to navigate the tariff refund landscape.
How do I account for tariff refunds for federal income tax purposes?
The answer to this question is nuanced and will depend on the treatment of the original/underlying expense and the nature and structure of your business, among other considerations. The U.S. Chamber does not provide legal or tax advice. Please consult an attorney or a qualified tax professional for more information.
Additional Resources
“The Supreme Court’s decision is welcome news for businesses and consumers. Over the past year, the Chamber has been working with small and midsize businesses around the country that have seen significant cost increases and supply chain disruptions as a result of these tariffs. Swift refunds of the impermissible tariffs will be meaningful for the more than 200,000 small business importers in this country and will help support stronger economic growth this year.
"We encourage the administration to use this opportunity to reset overall tariff policy in a manner that will lead to greater economic growth, larger wage gains for workers, and lower costs for families." - Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce
Read the U.S. Chamber's full statement applauding the ruling here.
We’ll have more information available to answer your most pressing questions about the decision and its impact on small businesses.
Check this article or visit our small business digital platform, CO- by U.S. Chamber of Commerce for the latest.
