IEEPA Refunds Split Importers After Ruling
The Supreme Court’s IEEPA tariff ruling created refunds for some importers, delayed recoveries for others and a new tariff layer as Section 301 duties took effect.
Coverage: 6 of 17 companies in this theme (AAPL, ACCO, CHD, CR, CRI, FLEX) — a sample, not the full set.
The Supreme Court’s invalidation of IEEPA tariffs turned tariff expense into an uneven refund cycle across six of 17 companies, giving some importers immediate cost relief while leaving others waiting for cash and accounting recognition. The shift matters because the recoveries are moving through cost of sales, working capital and fresh pricing pressure at the same time that replacement tariffs are taking effect.
Apple (AAPL) has applied for refunds of IEEPA tariffs paid and recognized refunds received as a reduction of products cost of sales. Crane (CR) moved from caution to recognition: it initially recorded no benefit because the recovery process, timing and amount were uncertain, then recognized $18.7 million of tariff refunds as a reduction to cost of sales during the three and six months ended June 30, 2026.
The biggest disclosed cash recovery came from Carters (CRI), which received approximately $132 million of IEEPA tariff refund payments from U.S. Customs and Border Protection during the second quarter of fiscal 2026, including interest, and recognized approximately $128 million as a reduction of cost of goods sold and $4 million in interest income. For a company with $2.95 billion in latest available revenue and $127 million of free cash flow, that refund is large enough to matter operationally.
Other companies are still treating the ruling as a receivable pipeline. ACCO BRANDS (ACCO) submitted CAPE claims seeking approximately $20.6 million of previously paid IEEPA tariffs, expects to receive those claims during the second half of 2026, and intends to submit additional claims of approximately $5.0 million expected during 2027. Church & Dwight (CHD) paid approximately $23.0 million in IEEPA tariffs, had not recognized any recovery as of June 30, 2026, and is entitled to approximately $15.0 million in phase II refunds expected in the second half of 2026.
The refund benefit is not a clean reset. Church & Dwight will invest IEEPA refund proceeds in consumer-facing activities and use them to offset inflationary pressures. ACCO BRANDS noted new Section 301 tariffs became effective on July 24, 2026, when temporary tariffs expired, while Carters noted Section 122 tariffs imposed after the IEEPA ruling expired on July 24, 2026, and additional Section 301 tariffs effective the same date range from 10% to 12.5% and apply to imports from approximately 60 countries and territories. The ruling is putting cash back in some hands, but the tariff burden is already being rebuilt in another form.