Full-Service Law Firm solving complex challenges through bold thinking, precise execution, and shared purpose.

Full Service Law Firm | Michael Best & Friedrich LLP

Specializing in the Intersection of Business &amp; Government

Meet our team of trusted advisors, strategic thinkers, and community builders dedicated to client success.

Learn about our full-service legal and business solutions, designed to address complex challenges for leading organizations across industries.

Access thought leadership, news, and resources to stay informed about the latest trends, legal developments, and industry innovations.

Discover how partnership, bold thinking, and precise execution drive results for clients nationwide.

Explore how our national reach and local expertise support clients across the United States and beyond.

Grow at a firm designed to bring out your best.

core/heading

CBP’s Executive Director for Trade Programs, Brandon Lord, told the Court of International Trade that&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmB3ePRxEzCCevhA-EdER2Xjc-Ym9lggYzl-ehltZ9rNRv74yj49K7Q9UHa-6pJLd9li6FYuWztuc_vc0dLw1Eh4Jcy2EYef14lx3A4XNUFbaTLFqN1yq-8eWmB7Br4ptujJaeSoZb4b22KTKv5n_KAFvoczgsz3CEZVKasCZZm7lOGke1SKnH-bTotOTcOCW6&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">the agency is developing a process to refund tariffs</a>&nbsp;imposed under the IEEPA authority following a court order covering unliquidated shipments. In a declaration to the court, Lord stated that CBP’s current systems cannot implement the type of refund process envisioned by the court, explaining that existing systems cannot identify and automatically repay all affected shipments. More than 53 million entries were subject to the tariffs, and manually reviewing and refunding them would require roughly 4.4 million labor hours, making a fully manual or automatic repayment process infeasible under current capabilities.

core/paragraph

To address these limitations, CBP is developing new functionality in its Automated Commercial Environment (ACE) system that would allow importers to submit claims identifying entries that paid IEEPA tariffs. The system would then process refunds on an importer-by-importer basis rather than issuing tens of millions of entry-specific payments. Lord also emphasized that importers must be set up electronically in ACE to receive refunds, noting that CBP cannot process payments for parties not registered in the system. CBP estimates the new functionality could be operational within 45 days, though the process will still require importer participation and validation steps to reconcile claims and resolve discrepancies. The court must still approve any refund process, and it remains unclear how the Department of Justice will respond, given its prior position that tariff relief should only be available to parties that pursue claims through the courts.

Earlier this week, Judge Richard Eaton ruled that&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMm1s-akyLb1ZR81EfUnYbT3GtVfYWej59vXnwJ3VTB0JGm8D6BUVO4k3VWi7MlY7O1hx8UhLQejFqnicelXLpRvzZbRpoethnlyY1RStFYLeoCG_bAtQaGVWEuiE8-C0H_OHXU8U9ymnn873DxRFYF6o-ltrsGqfQVPHXxwn1_KJY=&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">all importers are entitled to benefit</a>&nbsp;from the Supreme Court decision striking down the IEEPA tariffs, in a case brought by Atmus Filtration seeking tariff refunds. Eaton ordered Customs and Border Protection&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmmksBcBElK9SiQeMBBvhcaOpL6QL5a0MkPuUrhNLixl3gp08yI6AQZ9yqj3JIuIaCW9Pd1Yzc9cNr7zh8apwWWGhlCQp7h3W7U90UA0yxcoetEr6Jxk2o1Q8NmpuClNMo3EzCzEypraA36MUA8k0QJdwdUWLuISH5YtZGlpBnIcQX4tirv0RM4xDdzUR9RTHINkWg-C5jDXbFmgSl0z9aTw==&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">to stop calculating the contested tariffs</a>&nbsp;on customs paperwork and to recalculate certain duties that had already been processed, a step aimed at simplifying potential refunds. The judge later suspended the order. Eaton will oversee the thousands of related refund cases filed at the Court of International Trade, where litigation over the legality of tariffs imposed under IEEPA could take months and potentially stretch into late 2026 or beyond.

The Michael Best team is well-positioned to assist companies in navigating the CBP refund process. Please get in touch with Sarah Helton (sarah.helton@michaelbest.com) or Jeffrey Dunn (jsdunn@michaelbest.com) if you are interested.

Join Michael Best and Michael Best Strategies as we examine how the evolving tariff and trade landscape may impact your business. We provide guidance on:

Updates on the current and future tariff actions

core/list-item

Contractual considerations and key questions

core/list

core/button

core/buttons

Section 122 Tariffs Remain at 10%...&nbsp;For Now

Treasury Secretary Scott Bessent said the Trump Administration&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmRzPfWDdwEqsKoPgxxF6CJC4VRryCckKI7MwgtRUSixC_U-IXCl6DGsvfq6HL8TX1T4P3fgNqyq1v0oEcLLnM6nwmAB1mbkONGNuofKXAPqSnbSqJvTRzfA1OfApsma8-Xmt1TNwuZx9lMmqeiiqVIgwKaxUmR3wSUFatDC37K9GvoGAq9m9DKWQuY3TqtFPBNu6h3GJmQQokKjkYUQwcRl4JykTlpUAHuAZbLhYScCk=&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">is likely to raise its Section 122 tariff rate from 10% to 15%</a>&nbsp;sometime this week, signaling imminent action on the president’s pledge to increase tariffs. The current 10% universal tariff was imposed last month after the Supreme Court invalidated most of Trump’s earlier tariff framework. Administration officials have indicated that the new tariffs will rely on Section 122 authority, which is already facing legal challenges. USTR General Counsel Jennifer Thornton&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmH0Odh6z8Tiq6t2Qki_uBWjInd955XJgKUiArfGy1h1EdBUaNG7VTLnew68Ju4ECz7j7l4y37xXNha4j2V6eIaUa8x8Ut8HtTlR8vxAKF8aCPtodOGsytaA==&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">noted the administration</a>&nbsp;anticipates litigation but hopes the tariff measure will remain in effect for the full 150-day period allowed under the statute.

A&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmpjGJaOGJTtvQisHUodf6CdDw-MIBJsHAdpGWL-NOUZ3ZeztZDTDSpLV5HwAq_0zpSzFm65zP3GlsnPlUqsyyEtKVR2Y6MZvCs0yozqsRB0FA8mZdzO6rMC7VwF8tBWQrCgBRpjcuMpvMrgIgbn9zVERj6Yhk4y_5yFimoM38usKlQpUTyoOg9pMFqkOMCGXO&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">coalition of 24 Democratic state attorneys general and governors</a>&nbsp;filed a lawsuit at the U.S. Court of International Trade seeking to block President Donald Trump’s global 10% tariff, arguing it is unconstitutional and violates federal law. The states contend that Section 122 does not apply because the U.S. does not face a qualifying balance-of-payments deficit and because the tariffs are applied inconsistently, with exemptions for certain countries and products. The coalition is asking the court to declare the tariffs illegal, block their implementation, and require the federal government to refund any tariff costs incurred while they were in effect.

Trade Negotiations Update Post-IEEPA Decision

China: China still faces several non-IEEPA tariffs that remain in place, including Section 301 and 232 measures. The Chinese Ministry of Commerce said it will engage in "honest negotiations" in the next round of bilateral talks during President Trump's planned visit at the end of March, and that Beijing would&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmh_88_M-77f4-otqzoiuOKM6pu2Wvus_mMoXG4x9BzTPwtGHXKiJ80_bafpgKqWWqbXUVsisEYHfy9UIEFG6OcFJqJ-XsRIvZiYQjt11ASxo4CseaMUoqQXKGsjNmTcRJhJ2-8DTKeeTSnlEDPj0zbI5OHg4Y_-vsWiDvJQb4YUS-K0V7MrtXyYEZ1_DtC462IO3Xoj9IUwpLmkoYb8ypDL-qCQ6BOM3T&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">"comprehensively assess"</a>&nbsp;any developments from Washington before adjusting its countermeasures. Overall, China has remained relatively quiet ahead of the announced high-level trade negotiations in Paris next week and President Trump’s upcoming visit.

European Union: The EU&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmwGm2m2E997_xeyKshb3kcLi06BqxVegHSsthGs-DTlcHQZLMw9rBf1RcdnRX_Avt0zvyYfWDRNmBhSvEZeW1iNGeAtcNTbq_Vzs49jfAspbOMMKXI45iyOakKwQB85p01WoKZ5chgBk1uVE7dBPmPvtpiFOtI3SirpLI70fy8XfDhXgwPinfyS4COPXdw5-BCeiglsPyTeKicZF3JsxnZw==&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">warned that a 15% tariff</a>&nbsp;could violate the U.S. commitment to cap most tariffs at that level (potentially pushing about 7% of EU exports above it), prompting the European Parliament&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmzp6rOkwL5sFUTrUKMz2MYBD-CtLUPnd2GSLANcZrCt6juJbYiQHVYc2bo6irZm75rESKTYhr5zP0fXv5t0_7YR7c58WODXFUvLRmHOMqKie_Kn9EVA0XqZBCYbW6_PHHDLQBSUng2UgWmUm-GrPjm6taqsGBR0VVYbnNwFfcZRHnlUeUX4A-UnNuvgRYVbWiG68_mkH7QYmJaG4d-yqY16Mx2sO55vSC&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">to delay approval of the deal again</a>, though Trade Commissioner Maroš Šefčovič still aims for a March vote.

Canada: Canada emerges from the IEEPA ruling in a more favorable position among major US trading partners. USMCA-qualifying goods from Canada are explicitly exempted from the&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmgngLizrv2V_HvmGm55xQD-m-PCsF_EYQVVZm1g7snRZHDfPo2J-n4RNJ-wDWAs8Rw20pBDzpB8LBoe2K-JSSfBCFgSD340vTnRMWPTYkXNR4I2VKXcfmmqotn-ewlYECwlvLIj_zc939viy33QnrhRhVAVSW82nOniZnI2pJLxcOB6lprUMnQv93Yei4vu5ZVVZDut0ntTRz9oXjh4lr1aeQknNxiqUh0O0RI0F5R5g=&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">Section 122 tariffs</a>, meaning the bulk of Canadian exports to the US face no new tariff burden. The primary remaining exposure for Canada lies in non-USMCA goods and in the ongoing Section 232 steel and aluminum tariffs, which are unaffected by the ruling. Canada’s top official for US-Canada trade&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmpxzgF_Cy6tfEV1hwbNQ6lzIOt2pC83kNeLhvGSKK1Hz5sqKVcSlEz_2kiaxm_CDkwyvRTkVX6fubNOgm1OyoDAiN5ZiNCRQoMvXm_eGYyrdUyBuPnE0j3cWLdr52utTP&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">expressed his support</a>&nbsp;for the Supreme Court decision but acknowledged the continued impact of Section 232 tariffs. Canada has signaled continued engagement on USMCA review negotiations but has not announced new retaliatory measures in response to Section 122.

Mexico: Mexico's position following the ruling is relatively stable. USMCA-compliant goods are&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmJ2EZJ71DXwOYjh826Q96vsvPbTZ_21pjN1QbW1vZTu7H6zsvlA6JaKsATHn7EMyfDFWI40PziBqZoJdJ3qs6V_n-fWryOHXXtL3gqK7GCl5gJL12EgWsjx1aoZ35sG6yIbHWTn2zo5s=&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">exempt from Section 122 tariffs.</a>&nbsp;This is especially significant for Mexico as ~88% of Mexican exports to the US now fall under USMCA. Mexican&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmi55GHX_qoTNiycF3YkhSDAiBJTFbppa75Mzpbf8lHcG8fnhsPO0DwGtX0bOGOjmmPJx1CMc-1WMfTpiS0TmDKXPBLOWpaffVgPRDExzP-qDfYWSeYo1G0sC79hUzncS-NwGXjuncZyzhPErNgPyMsKN0oRVRJefk6wFhx7Xn6D82GKwL7cAKw7FB-TOxbHC19FDRHyfIuFxHpEclDIi7fo-FFoLhj36y&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">President Sheinbaum said</a>&nbsp;her government would carefully review the court's decision to assess its scope and impact, but did not announce any new trade measures. The Mexican government has not stated that it will use this summer's USMCA joint review to seek relief from either the Section 122 or the Section 232 tariffs.

India: India postponed a planned trade delegation visit to Washington and&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMms9W_k_D3LefpzZ16g2NaAVgaFWRA8ez-bnJirR5Wk4qtZvol9lzTSTaRTZtFmal-8MtcU_GX7UuHPMtwj-TlOAREn9gThTYpcoRvOv-4RW9P3QZO-RNTYMVvkh7nf6RpVWknJHwXe8J0YZxZYZaOTDcNJuag3mYE8vlg6ih0Mo7Oet9uz9QpXSjmWpZZOc3GMsn7zJN6CsGmMbmOce8b_Q==&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">delayed progress on a March agreement</a>&nbsp;due to tariff uncertainty, though its trade minister later held a surprise meeting in New Delhi with Commerce Secretary Howard Lutnick to continue discussions.

Japan: Japan sees little net benefit from the IEEPA-to-Section 122 transition. Japan had already negotiated its IEEPA tariffs down to 15%. This is above the flat Section 122 tariff of 10% imposed on all countries' imports. Japanese Trade Minister Ryosei Akazawa stated that some Japanese exports, currently subject to reduced tariffs under the trade deal, may face higher tariffs if the new tariffs are "stacked" on existing levies. However, the Japanese trade ministry also announced that Commerce Secretary Lutnick affirmed on a call on Monday that the two countries would implement the trade deal struck last year "in good faith and without delay.”

South Korea: South Korea sees little net benefit from the IEEPA-to-Section 122 transition. South Korea had negotiated its IEEPA tariff down from 25% to 15%, only slightly above the current Section 122 rate of 10%. However, barring further negotiations and confirmation from the US, South Korea has lost the sector-specific exceptions it had secured under that deal, including preferential treatment for automobiles, auto parts, and pharmaceuticals, which do not carry over under the uniform Section 122 structure.

Indonesia: Critics in Indonesia called on the government to reconsider a&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmZXjin_FNq5EfyuDoZ-x_ZIe7A3KQi7ql4trKggyTWr4VPVA3OumtbMwsv1uiL-kSLpJ-xYPyFbA62z0qOZz3nEE5gTbdisZSpJ44pvGz1g4YMb2WlnnFYt0LizLv7diq&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">recently signed U.S. trade deal</a>,&nbsp;arguing the Supreme Court’s decision undermined the tariff pressure that originally prompted Jakarta’s concessions.

Recent comments from USTR Jamieson Greer and other administration officials indicate that the administration is increasingly relying on Section 301 investigations as the primary legal pathway for new tariffs, particularly after the Supreme Court decision.&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmpzUSH2vIN0dlHWrmBnsTvPDzxRADSGt8XMoA4AAFEfluW8XKinR3CnabipUum-pAbg_borptyB6zE2lBH1sMtwmc9XMBmZfRsnmnkQ9gnU9pTQrcTSTkZjef1fmMYO2zLdRI3hIAiXx6rU1KpnNdZku_6reHby5fD4jVpoWtbajO50jecP_Glx-4O86bKH8H36zptnnAA9znTnyn-O8SrxlqwDUhPkBRiQ_agNtwmwxI-4eiv1O62zNYprQMDN9rUKp7OnKmrxk=&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">Greer has said USTR plans to launch</a>&nbsp;or accelerate several Section 301 probes targeting unfair trade practices (such as industrial subsidies, excess capacity, and technology discrimination) to complete investigations within roughly five months, enabling the president to impose new tariffs under a more durable legal framework. Administration officials have also emphasized that existing Section 301 tariffs on China (ranging from roughly 7.5% to 100% depending on the product) remain in place and are unlikely to increase in the near term, though additional sector-specific actions remain under consideration.

Senate Democrats, led by Senate Finance Committee Ranking Member Ron Wyden (D-OR), Small Business Committee Ranking Member Ed Markey (D-MA), and Foreign Relations Committee Ranking Member Jeanne Shaheen (D-NH),&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmLYzzhsu3nhjLaBztcye5UNKniKgYUg1JG361hty3PpGTe3A3jHeZpj1yHWI6vBbwJ5ZrYdCqdAskAw3NnKtl62eqHR1-4tNXaGaUe9DII9yEOC_gtwAjHJrqIfeXC-DEAKcxhjrBLshqaQ-v5IvWemUzVF9tA_Mjf53h2pPXYb4=&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">have introduced the&nbsp;</a><a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmLYzzhsu3nhjLaBztcye5UNKniKgYUg1JG361hty3PpGTe3A3jHeZpj1yHWI6vBbwJ5ZrYdCqdAskAw3NnKtl62eqHR1-4tNXaGaUe9DII9yEOC_gtwAjHJrqIfeXC-DEAKcxhjrBLshqaQ-v5IvWeu0jKUrQv3hiBhDxcRia32g=&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">Tariff Refund Act of 2026</a>&nbsp;following the Supreme Court decision striking down President Trump’s tariffs. The legislation would require CBP to refund an estimated $175 billion in unlawfully collected tariff revenue (plus interest) within 180 days, including for entries that have already been finalized. The bill prioritizes small businesses in the refund process, eliminates burdensome administrative hurdles, directs CBP to coordinate with the Small Business Administration to provide guidance and technical support, mandates regular reporting to Congress, and calls on larger importers and corporations to pass refunds on to customers.

Senate Finance Committee members Bill Cassidy (R-LA) and Sheldon Whitehouse (D-RI) have introduced the “<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMm0gECI3rJIARg_UxkuIwv_PK0Q6q3G6Nz9L8FZlpKXPFfFEq_tuxIHvk2NcbB48NQ5UflnMjzc7cgHdDKfumf4Hc4uZlr7WgsB3WC3ps-RGj_Hbk6F5NelbkqkVMXA5JWlEtbNlPX9uzFKXheTKAN_wo0gNylCeB_cIShW1KQ_kkEkoAt3KlkqwJ1RgZWddJw&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">Last Sale Valuation Act of 2026</a>”, which would eliminate the Customs and Border Protection “first sale” rule and instead require import duties to be calculated based on the actual price paid by the U.S. buyer in the final transaction bringing goods into the country. The bill would define “sold for exportation to the United States” as the price paid by the U.S. purchaser to a foreign seller, thereby ending a practice established through a 1992 court decision that allows duties to be assessed on an earlier, often lower-priced, offshore transaction.

The&nbsp;<a href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001PcEUgZODWvzuDMzP0D00OSRlyPGM4fjFuk6SpL-G0eqJWaEXQfj01u0-L5rVKIMmypmunUGt2LW_c6mWKuvhOdO-r74lY0V4uXPPgJ8Q6eeiPL6n0pUbD_4o1hedkzvoj3sWg3LhyPop5S99cXrtaG8YS5BDWl1Vet4SeFsX_bJmMYpqcPzeT0wAuKYn9nz65DpKjJgF53L5lPaTOhr7n0H_gbMaVdDzQGdgL6NtsOLPGEtI7w5PPkHekgMx02c24-44165do3VWKgXUSQeVgA==&amp;c=nRMbuMAB98LXbVslG199tFPOIKjVx_xE54DLukuGvcBFt1IGVcgvKQ==&amp;ch=PVdTIJ5Fpp5cT89rhrzKvofOwAmVRxrkdQlwJ8vo_qnNksk_rx8n0w==">President’s 2026 Trade Policy Agenda</a>&nbsp;outlines an “America First” approach aimed at reducing the U.S. trade deficit, strengthening domestic production, and increasing reciprocity in the global trading system. The administration argues that decades of liberalized trade have contributed to offshoring, the loss of roughly 5 million manufacturing jobs and more than 70,000 factories, and a record U.S. trade deficit exceeding $1 trillion, creating economic and national security risks. In response, the agenda prioritizes tariffs, bilateral agreements, and supply-chain reshoring to boost U.S. manufacturing, agriculture, and strategic industries. It highlights early results from the policy’s first year, including a decline in the U.S. trade deficit with China (down 32% in 2025) and increased exports and manufacturing activity.

Looking ahead to 2026, the administration identifies six key priorities: expanding the Agreement on Reciprocal Trade (ART) program to reduce foreign trade barriers while maintaining U.S. tariffs; aggressively enforcing trade agreements and U.S. trade laws, including Section 301 actions; securing supply chains for critical minerals and strategic sectors such as semiconductors, pharmaceuticals, and energy; conducting the required review of the U.S.-Mexico-Canada Agreement (USMCA) to address ongoing trade imbalances and regulatory disputes; managing trade with China to ensure reciprocity and compliance with bilateral commitments; and advancing U.S. interests in international forums. Overall, the agenda frames trade policy as a central tool for reindustrialization, national security, and domestic production capacity.

&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* Are you concerned about the impacts of the outlined trade issues? Please contact Sarah Helton, Michael Best Strategies’ Trade Practice Lead at&nbsp;sarah.helton@michaelbest.com&nbsp;for assistance.&nbsp;

Forklift lifting a shipping container between large stacks of multicolored containers at a port during sunset.

Stacked cargo containers in multiple colors at a shipping yard during sunset.

Trump Trade 2.0: Two Weeks Post-IEEPA Decision

Related People

Related Capabilities

You may also be interested in these

FDA Proposes Mandatory GRAS Notification Framework for Human and Animal Food Substances

Three Michael Best Attorneys Selected as 2026 Utah Legal Elite 100

Trade and Tariff Landscape Updates