Careers

Experiences

Industries

Offices

Our Firm

Pages

Our People

Updates

Practices

Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

Michigan Law Firm - Warner Norcross + Judd LLP

More than a year after Liberation Day, the tariff landscape continues to evolve in ways directly affecting manufacturing and retail supply chains. In a proclamation issued on April 2, 2026, President Trump revised tariffs on steel, aluminum and copper products under Section 232 of the Trade Expansion Act of 1962, changing both the applicable rates and the methodology for calculating tariff liability. Separately, following the Supreme Court’s February 20 decision striking down tariffs issued under the International Emergency Economic Powers Act of 1977 (IEEPA), U.S. Customs and Border Protection (CBP) has now issued instructions for how importers can begin to claim refunds for some of the IEEPA tariffs paid over the past year. This alert summarizes these developments and outlines key steps for importers.

core/paragraph

New Section 232 Tariff Calculations and Application

core/heading

The April 2 proclamation made several significant changes to tariffs applicable to steel, aluminum and copper imports. Most notably, the proclamation clarifies that calculation of Section 232 tariffs must be based on the value of the entire imported product — not just the value of the metal content within it. This resolves an issue that had been the subject of litigation and conflicting CBP guidance, which had previously suggested that tariffs should be calculated only on the metal portion of a product.

In addition to clarifying how Section 232 tariffs should be calculated, the April 2 proclamation applies:

A 50% tariff rate on items that are made “entirely or almost entirely” of aluminum, steel or copper. These products are listed in Annex I-A of the proclamation.

core/list-item

A 25% tariff rate on derivative products of aluminum, steel or copper, which are “not almost entirely” made of these metals. These products are listed in Annex I-B of the proclamation.

When the products listed in the annexes are made from aluminum, steel or copper smelted and cast in the U.S., the products will be subject to a 10% tariff, rather than the 25% or 50% tariff. Before this proclamation, such products were not subject to any tariffs under Section 232.

Finally, products from the United Kingdom are subject to special rates due to ongoing negotiations.

core/list

These tariff rates became effective April 6, 2026. Importantly, even where the applicable rate decreases — for example, from 50% to 25% for a derivative product — the shift to full-product valuation may result in a higher overall tariff amount because the calculation will now be based on the total value. Importers should review their product classifications against Annexes I-A and I-B of the proclamation to determine how their tariff rates may be impacted.

Status of IEEPA Tariff Refunds

After the Supreme Court struck down the IEEPA tariffs as unconstitutional, numerous lawsuits were filed in the U.S. Court of International Trade (CIT), the court with jurisdiction over tariff matters. All cases were assigned to a single judge, and one case, Atmus Filtration v. United States, Case No. 26-01259, served as the lead matter in which the CIT addressed the mechanics of IEEPA tariff refunds. The CIT strongly indicated that all tariffs paid must be refunded and CBP filed several declarations outlining its progress in building a refund system.

As of its March 30 declaration, CBP reported the system was approximately 85% complete. On April 6, the plaintiff voluntarily filed a notice of dismissal and the CIT dismissed the Atmus Filtration case on April 8; the plaintiff did not publicly state its reasons, though the dismissal came as the CBP refund system neared completion and the CIT promptly designated Euro-Notions Florida v. U.S. Customs and Border Protection, Case No. 25-00595, as the new lead case, reissuing its prior refund order in that matter.

Notwithstanding the dismissal of Atmus Filtration, CBP has now issued the much-anticipated instructions for how and when importers should submit refund requests for IEEPA tariffs. CBP has developed a new tool — the Consolidated Administration and Processing of Entries (CAPE) — within the Automated Commercial Environment Secure Data Portal (ACE Portal). CAPE is designed to consolidate refunds of IEEPA duties, including interest, rather than processing them on an entry-by-entry basis. CBP has indicated that Phase 1 of the CAPE system will go live at 8:00 a.m. EST on April 20, 2026.

Who Is Eligible for Phase 1 Refunds

Phase 1 of CAPE is available to importers of record (IORs) and the licensed customs brokers who filed entries on their behalf. Eligible entries are those that include at least one dutiable IEEPA Harmonized Tariff Schedule (HTSUS) Chapter 99 code and fall into one of the following categories: (1) unliquidated entries; (2) entries liquidated within the preceding 80 days of the CAPE filing date.

Importantly, for Phase 1 entries, importers do not need to file a case with the CIT to preserve their refund rights. In declarations filed by the CBP with the CIT, the CBP had indicated that liquidated entries would need to be addressed separately. The CIT also indicated that even fully liquidated entries must be subject to refunds.

Recommended Steps for Importers

Manufacturers and other importers should take the following steps to position themselves for timely IEEPA refunds:

Confirm that you, as the IOR, or your authorized customs broker, have an active ACE Portal account — only the IOR or the broker that filed the entries may submit a CAPE Declaration.

If you do not yet have an ACE Portal account, apply as soon as possible and enroll in ACH refunds to avoid delays.

If you already have an ACE Portal account, verify that active bank account information designated for refunds is on file.

Compile and validate a comprehensive list of all entries on which IEEPA duties were paid to streamline CAPE submission.

Coordinate with customs brokers to confirm filing authority and align on refund recipients.

Monitor CBP communications for updates on subsequent CAPE phases for entries not eligible for Phase 1. 

CBP has established <a href="https://www.cbp.gov/trade/programs-administration/trade-remedies/ieepa-duty-refunds" target="_blank" rel="noreferrer noopener">this website</a> to provide updates on IEEPA refunds.

Our supply chain, trade and automotive lawyers are actively monitoring these developments and are standing by to assist clients in addressing these tariff changes and potential refunds.

Ahead of the Curve Auto Supplier

Automotive

Supply Chain

Partner

Homayune A. Ghaussi

Senior Counsel

Adam D. Bruski

New Section 232 Calculations and IEEPA Refund Process Update

Warner Norcross + Judd LLP is responsible for the contents of our advertising and this website. Please read our full <a href="/privacy-policy/" aria-label="see privacy policy">privacy policy</a> available on our website. If you have any questions or comments about our website or our Privacy Policy please contact us at <a href="mailto:info@wnj.com">info@wnj.com</a> or 616.752.2000.

New Section 232 Calculations and IEEPA Refund Process Update

professionals