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Accounting considerations for IEEPA tariffs and potential recoveries
In February 2026 the US Supreme Court decided that the government’s executive branch does not have authority under IEEPA to impose tariffs.
The US Supreme Court ruled on 20 February 2026 that the tariffs imposed under the US International Emergency Economic Powers Act (IEEPA) are unlawful. This publication highlights accounting and financial reporting considerations related to the ruling.
Entities need to carefully consider the impacts of the ruling when preparing their financial statements (e.g., determining whether and when to recognise tariff refund obligations to customers) and the extent of information to be disclosed. Entities need to continue to monitor developments on how the US government may refund previously paid IEEPA tariffs.