KPMG report: U.S. Supreme Court IEEPA decision unlocks potential tariff refund opportunities but not without uncertainty
Potential refund scenarios and KPMG observations
The U.S. Supreme Court (SCOTUS) on February 20, 2026, held that the president cannot use the International Emergency Economic Powers Act (IEEPA) to impose tariffs (also referred to as customs “duties”). Notably, the SCOTUS opinion did not identify whether or how refunds will be issued.
This decision will have far reaching impacts, most immediately to be felt by entities that imported covered commodities, and paid associated duties, following the issuance by the president of several executive orders imposing tariffs on the basis of IEEPA authority beginning in February 2025.
Read a February 2026 report prepared by KPMG LLP that discusses the resulting potential IEEPA tariff refund process landscape, which as Justice Kavanaugh rightfully observed in his dissenting opinion, “is likely to be a mess.” It also proposes solutions and a potential path forward to assist companies navigate the complexity.