On
February
20,
2026,
the
Supreme
Court
held,
in
a
6-3
decision,
that
the
president’s
use
of
IEEPA
tariffs
—
particularly
the
so-called
Liberation
Day
tariffs
—
was
unconstitutional.
In
the
aftermath,
major
companies
have
flooded
the
courts
with
lawsuits
demanding
refunds
for
the
tariffs
they’ve
already
paid.
This
comes
on
top
of
others
who
filed
refund
claims
earlier,
betting
(correctly)
on
this
outcome.
It
all
sounds
like
welcome
news
for
consumers
who’ve
shelled
out
more
for
the
same
stuff
lately.
But
will
those
refunds
actually
trickle
down
from
businesses
to
their
customers?
Or
will
companies
just
pocket
the
windfall?
To
figure
this
out,
let’s
review
how
tariffs
actually
get
collected
in
the
United
States.
Before
goods
can
enter
the
country,
the
importer
must
clear
them
through
U.S.
Customs
and
Border
Protection
(CBP).
That
means
filing
an
entry
summary,
where
duties
and
tariffs
are
calculated
using
the
appropriate
codes
from
the
Harmonized
Tariff
Schedule
(HTS).
Once
the
importer
pays
the
tariffs
and
passes
inspections,
the
goods
are
released
into
U.S.
commerce.
But
CBP
has
up
to
314
days
to
revisit
and
adjust
the
tariff
amount
if
the
importer
got
the
HTS
codes
wrong.
After
that
window
closes
without
action,
the
entry
is
“deemed
liquidated”
—
the
calculation
is
final.
Liquidation
status
matters
because
it
dictates
how
importers
can
challenge
the
tariffs
and
seek
refunds.
For
unliquidated
entries,
they
can
file
a
Post-Summary
Correction
(PSC)
with
CBP.
If
the
PSC
is
accepted,
a
refund
will
be
issued.
For
liquidated
entries,
the
importer
must
file
a
formal
protest
within
180
days
of
liquidation.
If
denied,
they
get
another
180
days
to
sue
in
the
U.S.
Court
of
International
Trade.
Crucially,
any
refund
goes
to
the
importer
of
record
—
not
the
final
consumer
downstream.
Take
a
simple
case:
You
import
a
widget
directly
from
overseas,
pay
the
IEEPA
tariff
to
clear
customs,
and
get
it
released.
As
the
importer
of
record,
you
can
pursue
a
refund
via
PSC,
protest,
or
lawsuit.
Now
let’s
look
at
the
more
common
scenario:
You
buy
that
imported
widget
at
a
store.
Proving
the
price
hike
was
purely
from
the
tariff
is
already
an
uphill
battle.
Even
if
you
could,
you
can’t
ask
the
CPB
because
you
are
not
the
importer
of
record.
You
would
have
to
ask
the
store.
There’s
a
slim
chance
the
store
plays
nice.
FedEx,
one
of
the
large
companies
suing
for
refunds,
has
pledged
to
return
any
tariff
refund
it
recovers
back
to
shippers
and
customers
who
paid
them.
But
don’t
count
on,
especially
from
a
small
business.
They
might
offer
creative
excuses,
tell
you
to
pound
sand,
or
suggest
you
take
it
up
with
Trump
personally.
And
if
the
store
bought
from
a
distributor
or
middleman?
Then
the
store
isn’t
the
importer
of
record,
so
they
will
not
get
a
refund
from
the
CBP.
The
people
most
likely
to
see
actual
tariff
refunds
are
those
who
paid
CBP
directly
or
businesses
with
explicit
policies
to
rebate
customers.
But
if
you
snagged
a
fake
Labubu
doll
at
the
local
flea
market,
you’re
probably
out
of
luck.
Steven
Chung
is
a
tax
attorney
in
Los
Angeles,
California.
He
helps
people
with
basic
tax
planning
and
resolve
tax
disputes.
He
is
also
sympathetic
to
people
with
large
student
loans.
He
can
be
reached
via
email
at [email protected].
Or
you
can
connect
with
him
on
Twitter
(@stevenchung)
and
connect
with
him
on LinkedIn.