Tariff ruling triggers refund scramble and exposes Australians to new duties

Australian exporters are facing renewed uncertainty in the United States after a landmark Supreme Court decision scrapped a major class of tariffs, only for new global duties to be imposed almost immediately, triggering a scramble for refunds while exposing businesses to fresh costs.

The ruling in Learning Resources, Inc. v. Trump confirmed the US President does not have authority to impose tariffs under emergency powers, ending all duties introduced under the International Emergency Economic Powers Act from 24 February 2026.

However, the relief is short-lived, with a new global tariff under Section 122 of the Trade Act now applying broadly, including to Australia. Despite the introduction of new tariffs, the decision has significant financial implications, with importers now entitled to refunds, but no clear or immediate mechanism in place to receive them.

BDO in Australia's Customs, International Trade and Excise Leader, Leonie Ferretter, said the outcome creates both opportunity and risk for businesses navigating an already complex trade environment.

“While importers are technically entitled to refunds, the reality is that accessing those funds will be slow and administratively challenging, particularly given system constraints within US Customs,” she said.

The US Customs and Border Protection is developing new systems to process claims, with upgrades still incomplete, meaning businesses that fail to prepare could face delays or miss out entirely.

“This is not a passive process, companies need to ensure their data, systems and filings are in order now or risk leaving money on the table,” Leonie said.

At the same time, the removal of IEEPA tariffs has been offset by the introduction of a new global tariff under Section 122 of the Trade Act, currently set at 10 per cent and potentially rising to 15 per cent.

Crucially, this measure applies broadly, including to Australia, despite the Australia-US Free Trade Agreement.

“This effectively puts Australian exporters on a similar footing to non-FTA countries, which is a significant and unexpected shift,” Leonie said.

“It underscores how quickly the rules can change and why businesses cannot rely on historical trade settings.”

She said overlapping tariff regimes and ongoing policy changes are increasing compliance risks and cost pressures.

“We are seeing a fragmented tariff landscape emerge, and businesses need to actively reassess supply chains, pricing and contractual arrangements to stay competitive.”

With refunds pending and new tariffs in place, Leonie said companies should act immediately.

“The businesses that move early to secure refunds and adapt their strategies will be in a far stronger position than those that wait for clarity that may not come quickly.”
 

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Tate Papworth 
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E: Tate.Papworth@bdo.com.au 
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