Court decision informs strategic tariff litigation decision making

• By: AHPA
• On: 01/05/2026 00:07:39
• In: Regulation / Legislation

January 5, 2026

In a prior update, the American Herbal Products Association (AHPA) informed members of a legal option available to the trade to address one form of uncertainty regarding the scope of available relief should the administration's IEEPA tariffs be found unlawful. Specifically, this option entailed litigation seeking to enjoin U.S. Customs & Border Protection from completing liquidation of entered lots to mitigate the potential for the government to deny tariff refunds. This update reports on further developments that may inform the decision making of companies considering this option.
 
AHPA wishes to further inform members of a recent opinion of the United States Court of International Trade (USCIT) that denied a motion for a preliminary injunction pursuant to a similar legal action. In this decision, the court found that the government had taken the "unequivocal position" that "liquidation will not affect the availability of refunds after a final decision" regarding the legality of tariffs. In the cited response from the government, the administration asserted it "will not oppose or object to the [c]ourt's authority to order reliquidation" and that "[s]uch reliquidation would result in a refund of all duties determined to be unlawfully assessed, with interest."

This ruling arguably obviates the need for importers to pursue the legal option that was the subject of the prior update. However, significant uncertainties remain regarding the ultimate disposition and potential refunding of IEEPA tariffs; for example, the USCIT is not the final determinative court regarding the scope of applicable refund relief, and the Supreme Court may make a different decision regarding the scope of applicable refunds. As previously stated, this update does not constitute an endorsement of any particular legal action regarding the disposition of IEEPA tariffs. AHPA members should consult their own legal counsel regarding the impacts of this decision on their particular circumstances.