Aussie exporters urged to prepare for tariff refunds

A US Supreme Court ruling put an end to all of Trump’s duties under the Trade Act of 1974 from 24 February 2026, which, according to Reuters, invalidated billions of dollars in tariffs collected under the International Emergency Economic Powers Act (IEEPA) authority, creating a pool of $175 billion in refunds available to be claimed by affected businesses.

BDO Australia warned that as US Customs and Border Protection develops new claim processing systems, businesses that fail to prepare could face delays or miss out on refunds 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,” said Leonie Ferretter, international trade leader at BDO Australia.

The firm also noted that the lack of clear or immediate mechanisms in place to receive refunds brings financial implications for importers. “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,” said Ferretter.

Ferretter said that change reveals how quickly rules can shift and urged businesses not to rely on historical trade settings, adding that new compliance risks and cost pressures are emerging as a result of overlapping tariff regimes and ongoing policy changes.

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

“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.”

This follows the US Supreme Court’s strike down of Trump’s far-reaching drug and reciprocal tariffs using emergency powers under the IEEPA on 20 February.

Australia is set to be hit with a 10 per cent flat rate tariff, which will impact all nations for 150 days, despite an active Australia-US free trade agreement.

This new tariff under section 122 of the Act imposes a 10 per cent tariff on imports to the US for 150 days, taking effect on 24 February.

In a 20 February statement, the White House called the new tariff a “temporary import duty to address fundamental international payments problems and continue the administration’s work to rebalance our trade relationships to benefit American workers, farmers, and manufacturers”.

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