What the Administration’s June 2nd Appeal Means for IEEPA Tariff Refunds

Summary

The Administration's decision on June 2, 2026, to appeal the Court of International Trade ruling of March 4, 2026, has altered the landscape for importers pursuing IEEPA tariff refunds. While the appeal does not eliminate refund rights, it increases uncertainty and may significantly extend the timeline for many claims. As a result, importers should evaluate both their legal recovery prospects and their liquidity needs.

What the Administration Did

The government formally appealed the Court of International Trade's ruling to the U.S. Court of Appeals for the Federal Circuit. The appeal reflects the Administration's determination to preserve the tariffs and defend the scope of executive authority under IEEPA. The appeal also creates a basis for government agencies to proceed more cautiously while the litigation continues.

Why the Appeal Matters

The appeal is about more than a single refund program. The Administration has strong incentives to defend executive authority, avoid substantial refund exposure, and prevent a precedent that could limit future presidential actions. Consequently, the government is likely to pursue all available appellate remedies.

Phase 1 Claims: Still the Strongest Position

Phase 1 claims generally involve straightforward entries and refund mechanics. These claims remain the most likely to be processed first and ultimately recovered. However, even Phase 1 claimants should expect a more measured pace as agencies evaluate the implications of the appeal and the possibility of further judicial review.

Non‑Phase 1 Claims: Greater Delay Risk

Claims involving unliquidated entries, protests, reconciliations, and other complex issues face a different outlook. Agencies may be reluctant to devote substantial resources to resolving complicated claims while the legal foundation remains under review. As a result, many importers should anticipate longer processing times and additional uncertainty.

The Growing Importance of Claim Monetization

Before the appeal, many importers expected refunds to arrive relatively quickly. The appeal changes that assumption. For companies that need capital today, selling or monetizing a tariff refund claim can convert an uncertain future recovery into immediate cash. This can improve liquidity, support operations, reduce borrowing needs, and provide certainty in an uncertain environment.

Why Distressed Companies Should Pay Attention

Many businesses absorbed significant tariff costs during periods of economic stress. Even where a refund is ultimately expected, waiting months or years may Importers should evaluate: (1) the size of their potential refund claims; (2) whether claims fall within Phase 1 or involve more complex issues; (3) expected litigation timelines; (4) current liquidity requirements; and (5) the potential value of a claim sale or monetization transaction.

How to Monetize an IEEPA Tariff Claim

The Administration's appeal represents a significant turning point in the IEEPA refund process. While refund rights remain intact, timing has become a much larger issue. For some importers, patience may be the best strategy. For others, particularly businesses seeking immediate liquidity, the ability to monetize a refund claim may become one of the most valuable financial tools available.

Asset Enhancement Solutions, LLC (“AES”), a national business loan advisory firm, continues to facilitate the sale of IEEPA tariff refund claims into immediate cash,. Since entering this market, AES has facilitated the sale of over $25 million in tariff claim refunds across industries including food, seasonal goods, apparel, auto parts and home products. AES works with importers with claims starting at $100,000, with no maximum limit. The Buyers we work with have been purchasing claims up to a Buy Rate of 90% of the tariff amount with claims over $10 million even higher.

Most transactions can be completed in approximately 10 business days, assuming proper documentation and credit quality.

Process for Selling IEEPA Tariff Claims:

• As an example, Company X has paid ($10 Million) in tariffs since April 7, 2025.
• Company X agrees to “sell” its tariff claim to Buyer for 90% of the claim amount, i.e. $9 million.
• Buyer sends Seller a Confirm, and then ultimately a Claim Sale and Purchase Agreement which will govern the transaction.
• IMPORTANT – Company X retains its status as the “Plaintiff” / “Claimant” since these tariff claims are not transferable.
• Buyer might ask Company X to commence litigation for the return of the IEEPA tariffs paid. The rationale for this is that it is possible that only those parties who have commenced actual litigation are entitled to refunds. Thus, Company X will need to commence litigation in order to receive their refund.
• Buyer will continue to monitor the situation and inform Company X of developments.
• If and when the refund is received on the claim, Company X will receive the refund and forward to the Buyer.

Using an IEEPA Tariff Claim as Collateral for a Loan

• In lieu of selling an IEEPA Tariff Claim at a discount, it is possible to use this claim as collateral for a term loan. This term loan would be on a “recourse: basis to the borrower. As the minimum loan amount for a Fund to consider is $10 million, the claim must be at least $20 million or higher to collateralize a loan of this amount.
• The potential loan amount could be up to approximately 50% plus of the total IEEPA claim amount.
• The interest rate would be in the low to mid-teens and be “PIK” (Payment in Kind) whereby the interest is added to the loan balance on a monthly basis in lieu of cash payments.

Important Points Regarding the Sale of a Tariff Claim

• Company X (as seller of the Claim) must be a financially healthy enough counterparty for Buyer A to enter into what could be a 2-to-5-year process of obtaining the refund.
• Legal fees are split going forward based on risk percentage. If Company X sells 100% today, Buyer A will pay 100% of legal costs today. If Company sells 50% today, Company and Buyer will share the legal costs equally.
• Buyers are currently paying up to 90% to companies seeking to sell their IEEPA tariff claims. However, this is an evolving market and these percentages can either increase or decrease depending on the markets’ reaction to the Trump Administration’s expected obstructionism and the unresolved Court of International Trade’s procedural issues.
• Prior to the Supreme Court decision, buyers were purchasing tariff claims at an average of 22% due to the high risks involved.
• We will be monitoring on a daily basis the rates at which Buyers are purchasing IEEPA claims and we will update our website accordingly. Feel free to email us to ascertain what the rate is on any particular day.
• There would likely be an administrative process instituted such that companies that have paid these IEEPA tariffs will need to file special claims and wait to get refunded by the government. The process of receiving the refund payment from the government could take up to 2 to 5 years.
• Asset Enhancement Solutions, LLC also assisted many businesses expedite funding of their ERC (Employee Retention Tax Credit) within 6 to 8 weeks instead of waiting 12 to 36 months to receive funds from the IRS. AES facilitated the sale of $50 million of ERC claims over the past few years with individual claims ranging from $1 million to $7 million.

About Asset Enhancement Solutions, LLC

Asset Enhancement Solutions, LLC ("AES"), is a financial advisory firm that provides both Capital Raising and Consulting Services to companies considering important transactions such as debt or equity financing, selling a company or acquiring a company. We specialize in arranging debt and equity financing for companies with challenges. These include unfavorable challenges such as operational, legal, tax, financial or liquidity issues or positive challenges such as opportunities for growth, acquisition, and long-term success. AES works with middle market companies, small businesses, and public companies.

We never shy away from adversity and difficult challenges; we embrace and thrive on it. We have the experience and expertise needed to find options and creative financial solutions for any size business. The firm was founded on the principle of experienced operating executives providing valued-added services to clients at a reasonable fee structure.

AES added the processing of PPP Loans to its services in April 2020. As an Agent for multiple PPP lenders, AES processed over 1,500 Paycheck Protection Program (PPP) loans totaling $150,000,000.

Seeing that some businesses were waiting 12 months or longer to receive their ERC Refunds from the IRS, in March of 2022 AES teamed up with a few lenders and hedge funds that would either advance funds against ERC Refund Claims or purchase ERC Claims at a discount. This financing solution proved to be a lifeline for many companies. AES monetized ERC Claims totaling $50 million.

Please reach out to us to discuss how we can help you overcome your challenges and grow your business.

We are here to help. Do not hesitate to contact us at any time:

Phone: 516-767-0100
After Business Hours please leave a voice message and your message will be forwarded to us 24/7.
Email: info@assetenhancement.com

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