IEEPA Tariff Refunds Bring Little Relief for Most Breweries

In February, the U.S. Supreme Court held that tariffs imposed in April 2025 under the International Emergency Economic Powers Act (IEEPA) were unlawful. The decision invalidated the administration's broad reciprocal tariffs on imported goods. Approximately $166 billion was collected from more than 330,000 importers under the affected tariff programs. The decision does not cover the Section 232 tariffs on aluminum and steel since those duties were imposed under the Trade Expansion Act of 1962 rather than IEEPA.

Refunds Arriving Faster Than Expected

U.S. Customs and Border Protection (CBP) has established an administrative refund process through its CAPE and ACE systems. Importers of record must submit claims and supporting entry information. Instructions are available on CBP's IEEPA Duty Refunds page.

Despite initial expectations of a slow and complicated process, refunds are already producing substantial corporate windfalls. As of July 31, CBP has received more than 252,000 applications and accepted $128.7 billion in refund claims for processing.

Prospects for Direct Relief

Breweries experienced most tariff-related costs indirectly, as refund rights belong to the importer of record (the party that paid the duties directly to CBP). A brewery that bought imported equipment, hops, or packaging from a domestic importer usually has no direct claim against the government.

Whether breweries benefit will depend primarily on their relationships and contracts with suppliers that are entitled to a refund. For example, if an equipment importer receives a refund, the money will not automatically flow to the brewery that purchased the equipment. Any recovery will depend on the parties' contract terms or subsequent negotiations.

What Breweries Should Be Doing

Breweries should:

• Determine whether they directly served as the importer of record for any goods subject to the invalidated IEEPA tariffs.
• Ask equipment, ingredient, and packaging suppliers whether they are pursuing refunds and whether any savings will be passed through.
• Review existing contracts for tariff-adjustment, rebate, or cost-sharing provisions.
• Include provisions in future supply agreements specifying how tariff increases and subsequent refunds should be allocated.

For most breweries, relief is more likely to come through supplier credits, negotiated concessions, or future price reductions than through a direct government refund.

The Brewers Association will continue monitoring tariff developments and advocate for policies that relieve cost and supply chain burdens on members.