IEEPA May Be on the Chopping Block, But Your Duty Exposure Isn’t | Customs & International Trade Law Blog

On November 5, 2025, the Supreme Court docket of the US (SCOTUS) held oral arguments for Trump v. V.O.S. Choices, Inc., relating to the legality of the Worldwide Emergency Financial Powers Act (IEEPA). The case will in the end resolve whether or not the Trump Administration has the authority to impose tariffs beneath IEEPA. Importers and commerce professionals are watching the case intently, however even when the IEEPA tariffs are thrown out, the brand new administration has made clear that it’s going to pivot and use different authorized avenues to impose tariffs.  Since oral argument, a number of discussions have been held with the Division of Justice and the plaintiffs relating to any refund prospects. Primarily based on these discussions, it seems that the US is anticipating dropping this matter on the Supreme Court docket however needs to place obstacles to restoration. The US has additionally clearly acknowledged that they intend to search out different methods to impose related duties.

The message is obvious: even when the Supreme Court docket strikes down IEEPA tariffs, tariff publicity is right here to remain. NOW is the time for importers to revisit their valuation practices, discover obligation minimization methods, and guarantee they’re taking each lawful step to reduce obligation affect going ahead.

Why Tariffs Will Keep Even when IEEPA Dies

Because the earliest days of the Trump Administration, the White Home has made tariffs a cornerstone of their commerce and “America First” coverage. The President and Administration officers have repeatedly touted tariffs as among the finest instruments accessible to degree the worldwide commerce enjoying area, incentivize home manufacturing, and lift income for the US.

IEEPA is simply one of many legislative avenues the Administration has to impose tariffs. Beneath is a abstract of tariff instruments accessible to the Administration.

If IEEPA tariffs are struck down, the Administration will merely pivot to a different authorized authority. This isn’t hypothesis. On January 9, 2026, Nationwide Financial Council Director Kevin Hassett mentioned of the Supreme Court docket case: “Our expectation is that we’re going to win, and if we don’t win, then we all know that we’ve bought different instruments that we are able to use that get us to the identical place.” He additionally mentioned in a Fox Enterprise Interview that the Administration has a backup plan able to go that may enable tariffs to be put “again into place virtually instantly, ought to the Supreme Court docket rule in opposition to us.”

What Importers Ought to Do

Importers ought to view the present tariff setting as a long-term actuality and proactively put money into methods that legally reduce their obligation publicity. There are a number of methods to LEGALLY reduce tariffs, together with:

Responsibility disadvantage
Tariff engineering
Nation of origin change
First sale
Responsibility deferral
Negotiate DDP Incoterms

Importers must also put money into compliance. The U.S. authorities has signaled that enforcement of commerce regulation is a high precedence and has levied hefty fines and even initiated legal circumstances in opposition to importers evading duties.

Importers ought to:

Conduct inside audits
Refresh classification procedures
Make sure the accuracy of valuation practices
Revisit provider agreements
Tighten dealer oversight
Leverage expertise
Develop coaching for employees
Strengthen recordkeeping practices
Put together for audits

Lastly, importers ought to take proactive measures to guard their means to hunt refunds if the IEEPA tariffs are in the end discovered to be illegal. It might be the place that CBP solely has to grant refunds to these events which have a Court docket order ordering the refund.  This may be primarily based, not less than partly, on an argument in fairness – that whereas the Courts could have the authority to challenge a refund, the issuance of a refund could be  inequitable. Accordingly, importers ought to file a preventative court docket problem within the Court docket of Worldwide Commerce (CIT). This may imply that if the tariffs are in the end struck down, however just for these which are in Court docket, importers would additionally profit from the ruling with out having to pursue an extended further post-decision course of.

Our workplace will proceed to intently monitor any case updates and can proceed to maintain you knowledgeable. Please evaluate the next sources to remain knowledgeable on tariff updates and jumpstart your 2026 compliance program.

Diaz Commerce Legislation can help in auditing and/or growing importer compliance applications, establishing importer ACE accounts, and executing methods to reduce duties. Must you want to be a part of the IEEPA case or have any questions relating to some other import or export-related matter, please don’t hesitate to contact our workplace at data@diaztradelaw.com.