The US tariff and trade policy landscape continues to evolve. On November 5, 2025, the US Supreme Court heard oral arguments challenging the President’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs. This follows rulings by lower courts earlier this year that the IEEPA tariffs exceed the President’s statutory authority.
While the tariffs remain in effect pending the Supreme Court’s decision, a ruling that affirms the lower courts’ decision could introduce significant accounting and reporting challenges. The timing of a decision remains uncertain; it could come as soon as the end of 2025 or in the first half of 2026.
If the tariffs are struck down, it is unclear how any refund would be structured, including whether the ruling could be applicable on a prospective versus retrospective basis. The nature of the decision will raise numerous accounting questions. A ruling that invalidates the tariffs could necessitate a rapid and accurate calculation of the refund amount. In addition, companies may also need to consider their contractual obligations, because they may need to pass refunds on to customers.
The panel strongly advised a proactive stance. Companies should consider preparing documentation now in anticipation of a potential future refund claim that could arise from the Supreme Court's ruling. Being prepared will be critical for rapid and accurate financial reporting if a ruling materializes.
