The Trump administration’s tariff program has suffered another major legal setback.
The U.S. Court of International Trade recently ruled against the administration’s 10% Section 122 global tariff surcharge, following the Supreme Court’s earlier decision striking down IEEPA reciprocal tariffs. But despite those rulings, tariffs remain firmly embedded in the supply chain landscape.
That uncertainty was the focus of a recent episode of The Freight Buyers’ Club. Karen Kenney, Dimerco Express Group Trade Compliance Strategist and founder of K2 Trade Solutions, joined Nancy O’Liddy, Executive Director of the National Industrial Transportation League (NITL), to discuss what tariffs are still standing, why importers are struggling with the refund process, and how companies can avoid leaving millions of dollars on the table.
Tariffs may be changing, but the pressure on shippers is not
Although the courts have challenged parts of the administration’s tariff framework, Karen warned that the legal decisions have not brought meaningful relief for importers.
“Right now, unfortunately, it means a lot more work for shippers without any real relief.”
Karen explained that the administration is expected to continue appealing the rulings while simultaneously preparing additional tariff actions through Section 232 and Section 301 authorities.
“The trade, unfortunately, is in the position of having to pay these unlawful tariffs for a while“. And also in the position of not knowing what the Section 122 tariffs will be replaced with in July when they expire.”
That uncertainty is making planning extremely difficult for importers already dealing with rising logistics costs and volatile global supply chains.
Many shippers are struggling simply to keep up.
“There is no stability,” Nancy said. “Their freight is contracted out for many, many weeks, and then a tariff goes in place and that’s not in the contract, and they’re paying it.”
She added that many companies are now reassessing their internal systems and record keeping processes as the refund process unfolds.
The real problem is tariff stacking
One of the most important discussions in the episode centered around tariff stacking.
Karen explained that importers are often not paying a single tariff rate. Instead, multiple tariff programs can apply simultaneously, dramatically increasing landed costs.
For many industrial shippers, those costs are becoming unsustainable.
“How are we even moving this freight?” O’Liddy mentioned. “That doesn’t even include the movement of it. That’s just the tariff.”
The $166 billion refund opportunity
While importers are trying to navigate future tariffs, many are also attempting to recover duties already paid through the government’s new CAPE refund process.
Roughly $166 billion in potential refunds is tied to IEEPA duties collected during the dispute.
For many companies, however, recovering those funds has become a major operational challenge.
O’Liddy described the process as highly complicated, particularly for companies working with multiple customs brokers or incomplete records.
“If your paperwork is not quite in order, that takes it that much longer,” she said. “If you used different brokers throughout the time you were moving freight, it’s a nightmare paperwork-wise.”
Importers are realizing they need better support
Karen said many importers are now realizing they need stronger customs and compliance support, especially as tariff rules become more complicated.
“If you’re struggling with your broker, they’re not communicating or you think they’re taking an unfair share of your refund, it’s time to go look for a new broker,” Karen said during the episode.
She added that importers should be looking for partners who can help them navigate the growing complexity around tariffs and refunds.
“Things are about to get even more complicated than they already are now,” she said. “You need a good partner. You need somebody by your side that’s going to help you through all of this.”
Many importers may not fully understand how much money is actually at stake.
“I have helped just over 50 importers,” Karen explained. “These are folks getting back anywhere between $1,000 and one importer $91 million.”
Many importers are overpaying without realizing it
One of the strongest takeaways from the episode was Karen’s warning that tariff discrepancies are far more common than many companies realize.
“I haven’t yet reviewed a company’s entries and found one where there weren’t significant over and/or underpayments.”
In one case, Karen said a company had overpaid tariffs by several million dollars.
“These tariffs are just too complex for importers, brokers and broker software packages to get right every single time”.
The risk is not limited to overpayments. Underpayments can create compliance exposure and financial risk if errors are discovered later by regulators.
That is why many importers are now auditing historical entries and reassessing classification, valuation, and origin data before submitting refund claims.
Fraud risks are growing around the refund process
The episode also explored growing concerns around tariff fraud and refund interception.
Karen warned that fraud targeting refund payments is becoming a serious concern as large sums of money move through the CAPE portal.
“We’re going to see significant fraud here.” She encouraged importers to carefully monitor account information, work only with trusted partners, and verify refund banking details regularly.
There is a lot of money on the table, so move slowly and think before you act.
What importers should focus on now
The tariff environment continues to evolve quickly, but the discussion highlighted several priorities for importers:
- Review historical entries for overpayments and compliance gaps
- Understand how tariff stacking impacts landed costs
- Validate broker processes and data accuracy
- Monitor refund claims carefully
- Strengthen internal trade compliance procedures
- Work with experienced trade compliance specialists before submitting claims
As Karen explained, many importers are navigating a level of complexity they have never encountered before.
Don’t leave money on the table
The combination of tariff uncertainty, refund complexity, and compliance risk is creating enormous pressure on importers across industries. But it is also creating an opportunity for companies willing to review their data carefully and act strategically.
Subscribe to The Freight Buyers’ Club Podcast for more discussions on tariffs, freight markets, and global supply chain challenges.
Karen Kenney serves as Dimerco Express Group’s Trade Compliance Strategist, helping importers navigate tariff exposure, audit entries, recover refunds, and strengthen trade compliance processes.
If your company needs support managing tariff refunds or reviewing customs entries, get in touch with a Dimerco trade compliance specialist today.
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