Tariffs, Credit Agreements, and Litigation: Refund Processing, Tariff Monetization Market, and Risk Mitigation

This CLE course will cover the legal and financial fallout from the Supreme Court's tariff decision. The faculty will address implications for credit markets and loan documentation, the evolving litigation landscape, and the emerging tariff refund monetization market.

The decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA) has created uncertainty for businesses, including lenders and borrowers. It raises questions about tariff refunds, financial and tax reporting, and how credit agreements should address sudden regulatory reversals.

Although the Court invalidated the tariffs, it did not resolve whether—or how—businesses will receive refunds for duties already paid. The Court of International Trade (CIT) has ordered U.S. Customs and Border Protection to refund IEEPA duties, setting the stage for significant refunds, follow-on litigation, and potential tax burdens.

Lenders and borrowers must consider how a sudden regulatory reversal may distort financial metrics, drive restatements, or create one-time gains that affect loan documentation. The faculty will explain how tariff refunds can affect EBITDA, covenant compliance, and lender/borrower representations, then cover drafting strategies to mitigate future trade policy risk.

Although the CIT has ordered refunds, the process will be complex, requiring status confirmations (unliquidated, liquidated but not final, or fully final). Uncertainty remains around what qualifies as "not final," and recent government posturing suggests further litigation. This course will outline refund processing and highlight likely dispute points, including third-party claims to recovered refunds, to help attendees evaluate recovery strategies and whether secondary-market options may be more attractive.

This secondary market emerged before the Supreme Court's decision, with investors buying potential tariff-refund claims from importers in exchange for the right to recover on those claims. For some businesses, selling claims may be a more attractive alternative to the cost and delay of the refund process. The faculty will cover key features of this market and when it may be appropriate as a refund strategy or an investment opportunity for debt buyers.

Listen as our panel explains how the decision is reshaping lending risk, deal documentation, and risk allocation. Learn the basics of refund processing, secondary-market alternatives, and where litigation may arise with this 90-minute survey course.