Authors: Daniel Rae and Jake Callaghan | 5-minute read
IEEPA tariff refunds and what’s coming next
On 20 February 2026, the US Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were not legally authorised.
Consequently, US Customs and Border Protection (CBP) is developing new functionality in their Automated Commercial Environment (ACE) system to automate the process to refund these tariffs, as detailed by Daniel Rae and Jake Callaghan.
What you need to know
Refund process
CBP is creating a new module within the ACE system designed to administer IEEPA refund claims.
Importers should get an ACE Secure Data Portal account and importer sub-account, then enrol in the Automated Clearinghouse (ACH) to authorise payment of refunds to a nominated US bank account.
Importers and customs brokers will be able to access the online portal to submit claims, providing lists of affected entry summaries. The system will run automated checks on submitted entries to:
- remove IEEPA‑related HTS provisions,
- recompute the duties owed at the time of importation,
- carry entries through liquidation or reliquidation as needed; and
- refund any overpaid IEEPA amounts via electronic payment.
CBP have stated that operational, legal, and technical considerations may require adjustments, and the full refund‑processing timeline could extend for several months.
An ACE Secure Data Portal account also enables importers to access their US import data directly. Further information on how to create and manage an account can be found here – US Customs & Border Control – How to Use the Automated Commercial Environment (ACE).
Current tariff rates
As detailed in the summary above, the global 10% TIS applies to most Australian imports into the US. However, higher rates apply to some goods, whilst others can be imported duty free.
Goods subject to higher tariff rates are those which have been labelled a threat to national security after an investigation led by the US Department of Commerce. The tariffs are imposed under Section 232 of the Trade Expansion Act 1962, and include:
- 50% on steel and aluminium and certain derivative products
- 25% on automobiles, trucks and truck parts
- 50% on certain copper and copper-containing products
- 25% on certain upholstered wooden products, kitchen cabinets and bathroom vanities
- 25% on certain advanced computing chips and products.
Additionally, the de minimis tariff exemption for all low-value imports to the US is still suspended. As a result, all goods valued at US$800 or less are subject to the relevant tariffs.
Legality of the tariffs
Both the current TIS and previous IEEPA tariffs are widely regarded as breaching obligations the US had agreed to adhere to as a World Trade Organisation (WTO) member state.
Not only do the tariffs violate the Most-Favoured-Nation (MFN) principle - equal treatment for all trading partners, but they also exceed the agreed ‘ceiling’ tariff rates set by WTO members for many products.
The Supreme Court decision confirmed that the President lacks authorisation for the IEEPA tariffs – it remains to be seen whether the Section 122 tariffs will be challenged.
Section 122 does authorise the President to impose temporary tariffs for 150 days of up to 15%. However, this was drafted as the Bretton Woods system was ending, along with fixed exchange rates, as a new period of economic and trade liberalisation begun.
Mechanisms were put in place to address balance of payments issues, with Section 122 authorising temporary import restrictions to address “fundamental international payments problem” and “large and serious United States balance-of-payments deficits”, which do not carry the same meaning in the current economic and floating exchange rate system.
Ongoing investigations
There are ongoing investigations under various legislation, scheduled to conclude prior to the 24 July 2026, coinciding with the expiration date of the 10% TIS. It’s anticipated the investigations will generate remedial outcomes, resulting in new tariffs.
The US has launched another Section 232 investigation to assess the effect of the import of the following goods on US national security (these product categories are currently exempt from US import tariffs):
- pharmaceuticals and pharmaceutical ingredients, and derivative products
- aircraft, jet engines and parts
- polysilicon and derivatives
- unmanned aircraft systems and their parts and components
- wind turbines and their parts and components
- personal protective equipment, medical consumables and medical equipment, including devices
- robotics and industrial machinery.
The Office of the US Trade Representative (USTR) has launched new investigations under the Trade Act 1974 to assess foreign 'unfair trade practices' that are deemed unreasonable or discriminatory to the US. Whilst Australia is excluded from the scope of the “Structural Excess Capacity” investigation, it is included in the “Forced Labour Practices” investigation.
The investigation is focusing on whether there has been a failure to impose and effectively enforce a ban on the importation of goods produced with forced labour and could result in new tariffs on products from the targeted countries, including Australia.
As with those previously and currently in place, any potential future tariffs imposed because of the above investigations may result in member states initiating formal WTO dispute settlement resolution. There is possibility for the approval of retaliatory measures, being the suspension of tariff concessions on an equivalent value of trade against the US, although many nations are choosing to avoid the further disruptions to global trade they would likely cause.
Support available
If you require further information on anything in this article or wish to discuss trade and customs matters further, including support obtaining and analysing ACE import data and understanding which goods are currently subject to the 10% TIS, higher sector-specific rates, or exempt, please contact us.
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