Bureau Report | Trade Finance & Legal Recovery | New Delhi , Bharat (India) & Washington, D.C., USA

Following the U.S. Supreme Court’s definitive 6-3 strike against the administration’s “reciprocal” tariff regime on February 20, 2026, the focus for global enterprises has shifted from policy debate to a massive financial recovery effort. With an estimated $175 billion in overpaid duties hanging in the balance, the mechanism for reclaiming these funds is now the primary concern for trade councils worldwide.

The ruling in Learning Resources, Inc. et al v. Trump established that the President exceeded his authority under the International Emergency Economic Powers Act (IEEPA). Chief Justice John Roberts clarified that while the executive can regulate imports during emergencies, the power to levy taxes—including tariffs—remains an “exclusive prerogative of Congress.”

Expert Insight: The FITIG Perspective on Recovery

Aditya Khanna, Chairman of the Federation of International Trade Investor Gunodaya Association (FITIG), described the ruling as a “watershed moment” for the rule of law in global commerce, but warned that the financial recovery process would be technically demanding.

“While the Supreme Court has opened the door, the ‘refund race’ will be won by those with the most meticulous record-keeping,” said Aditya Khanna. “Many of our member firms, particularly in the Indian gems, jewelry, and textile sectors, have been paying these 18% duties under protest for nearly a year. The Federation is now coordinating with Washington-based legal counsel to ensure a collective filing process for international investors.”

Aditya Khanna emphasized that the complexity lies in the Harmonized Tariff Schedule (HTS) codes. “The government may attempt to reclassify these goods under other active enforcement actions, such as Section 301, to avoid total repayment. FITIG is advising all members to audit their entry summaries immediately to prevent such reclassification traps.”

The Refund Mechanism: Navigating the CIT and CBP

The process for obtaining refunds is not automatic. Under U.S. customs law, specifically 19 U.S.C. § 1514, importers must navigate a strict administrative pipeline:

• Administrative Protests: Importers with “unliquidated” entries must file a protest within 180 days of the liquidation date.
• The “Stayed” Cases: Thousands of companies that joined “mass-action” lawsuits in the U.S. Court of International Trade (CIT) may see their cases reactivated for immediate judgment.
• Interest Accrual: Under federal law, successful refund claims typically accrue interest from the date of the overpayment, a factor that could add billions to the U.S. government’s total liability.

Priority HTS Categories for Refund Claims

Based on FITIG’s analysis, the following sectors are most eligible for refunds of the invalidated IEEPA surcharges:

White House Pivot: The 150-Day Clock

Despite the legal setback, President Trump has already pivoted to Section 122 of the Trade Act of 1974, announcing a new 10% global baseline surcharge to address balance-of-payments concerns.

However, this new authority is legally capped at 150 days. “The administration is trying to bridge the gap,” Khanna noted, “but for the billions already paid under the illegal IEEPA regime, the law is now on the side of the importers. We expect the first wave of refund checks to be processed by late Q3 2026.”

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