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IEEPA tariffs crushing my import margins — anyone challenging them?

Started by ImporterMike · Dec 2, 2024 · 12 replies
For informational purposes only. Not legal advice.
IM
ImporterMike OP

I import consumer electronics from Vietnam. Been paying 46% tariffs since April under these IEEPA emergency orders. Just saw my competitor somehow got their rate down to 20% through some "framework agreement."

My customs broker says there's litigation at SCOTUS that might invalidate all these tariffs. Is that real? And if they get struck down, can I get refunds on what I've already paid?

We're talking about $380K in extra duties so far this year. That's not nothing.

TC
TradeCounsel_JB Attorney

Yes, the SCOTUS case is real. It's Learning Resources, Inc. v. Trump. Oral arguments were Nov 5, 2025. The issue is whether IEEPA authorizes tariffs at all — some constitutional scholars think it doesn't.

If SCOTUS strikes down the tariffs, there's a legal argument for refunds under 19 U.S.C. § 1520(d), but it's not automatic. You'd need to have filed a protest within 180 days of liquidation of each entry.

IM
ImporterMike OP

What's liquidation? I just pay what CBP tells me to pay.

TC
TradeCounsel_JB Attorney

Liquidation is when CBP finalizes the duty calculation for an entry — typically 300-400 days after the goods arrive. Your broker should be tracking this. You get a liquidation notice (CF 4333A or via ACE). You then have 180 days from that date to file a protest if you think the duties were wrong.

The CIT just ruled in December 2025 that entries must be unliquidated OR have a timely protest pending to be eligible for refunds if IEEPA tariffs are struck down.

VN
VN_Sourcing_Pro

Same situation. Vietnam went from 46% down to 20% in August for companies that signed framework agreements. Problem is those agreements require committing to minimum US investment or hiring. Small importers like us can't qualify.

I'm filing protective protests on every liquidation now. Costs about $200/entry in broker fees but if SCOTUS rules our way, that's a huge return.

CH
ChinaTrader_2020

China importer here. We're at 20% now (was way higher before the May deal). Even at 20% my margins are thin. The fentanyl tariff alone is 10%.

Anyone know if the de minimis exemption is coming back? We used to ship small orders under $800 duty-free but that got suspended in August.

TC
TradeCounsel_JB Attorney

@ChinaTrader_2020 De minimis suspension for China/HK is indefinite as of Aug 29, 2025. No sign it's coming back. That was a separate executive action, not part of the IEEPA tariff case.

The SCOTUS case won't affect Section 301 tariffs (the original Trump-era China tariffs) — those are under different statutory authority and already survived legal challenges.

IN
IndiaSourcer

India is getting hit worst. 50% tariff — 25% base plus 25% Russian oil secondary tariff. We didn't even do anything wrong, it's punishment because India buys Russian oil.

Switched half my production to Bangladesh but they're at 37%. No good options.

IM
ImporterMike OP

@TradeCounsel_JB — so I need to file protests on entries that have already liquidated? How do I even find out which ones have liquidated?

TC
TradeCounsel_JB Attorney

Your broker can pull liquidation status from ACE. Ask them for a report of all entries from April 2025 forward with liquidation dates. For anything liquidated more than 180 days ago, you're probably out of luck. For anything within the window, file protests now.

For unliquidated entries, you can ask your broker to file a "request for extension of liquidation" to delay the clock while SCOTUS decides.

CB
CustomsBroker_LA

Broker here. We're filing protective protests for all our clients who want them. Standard language cites IEEPA constitutional challenge. If SCOTUS upholds the tariffs, the protest just gets denied, no harm done. If they strike them down, you're in line for a refund with 7% interest (non-corporate) or 6% (corporate).

Cost is real though — we charge $175/protest plus CBP filing fee. For importers with hundreds of entries that adds up.

IM
ImporterMike OP

UPDATE: Talked to my broker. I have 47 entries that liquidated in the past 180 days. Filing protests on all of them. Total cost about $9K but potential refund is $180K+ if SCOTUS goes our way.

Also asking them to extend liquidation on everything else pending the decision. Thanks everyone.

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