On this week’s tariffs-focused edition of the Glossy Podcast, senior fashion reporter Danny Parisi is joined by Angela Santos, partner at the law firm ArentFox Schiff, for a legal perspective on tariff refunds, shifting trade policy and fashion brands’ best next steps.
The conversation comes at a volatile moment for global trade. Following the Supreme Court’s February 2026 ruling against tariffs imposed under the International Emergency Economic Powers Act (IEEPA), brands initially expected relief. Instead, they’re facing a new wave of tariffs under alternative legal authorities, alongside ongoing litigation and an unclear path to refunds.
Here are three key takeaways, in Santos’s words, lightly edited for clarity.
The reality of post-ruling tariff instability
Santos: “Clients were really anticipating this ruling. They thought that, once the Supreme Court decided against the tariffs, they were all going to get back millions of dollars, and things would be calmer. But in many ways, there was actually more stability before the IEEPA tariffs were ruled invalid versus now.
On the same day that SCOTUS ruled against the tariffs, the administration announced a broad swath of new tariffs to replace them — effectively recreating the same regime. So even though companies hoped this would bring stability, it actually brought a new onslaught of instability.”
Why tariff refunds are still far from straightforward
Santos: “When the Supreme Court ruled, I had about 100 emails within minutes of, ‘OK, when do we get our money back?’ And the answer was: ‘We’re not sure yet.’
Right now, there’s a proposed process where importers upload their entries into the ACE portal, and the government validates and recalculates duties. But it’s still in development, and there are a number of open questions, like how long it will take, whether refunds will be accurate and what happens if there are delays.
It’s simultaneously important that importers preserve their rights. Even if the process seems simple, companies should still be filing protests and tracking their data in case something goes wrong.”
How fashion brands should respond now
Santos: “Companies really do need to keep track of their data, not only for the IEEPA tariffs, but also for the new tariff regimes that are currently in place and being developed. There’s going to be a lot of litigation around all of these.
At the same time, brands need to think about mitigation. That can include things like tariff engineering, leveraging free trade agreements or restructuring supply chains.
Fashion companies, in particular, should continue to diversify. Don’t put all your eggs in one basket in terms of country of origin. If you’re producing in China, you might also want to produce in Vietnam. If you’re producing in India, you might also want Cambodia. That flexibility is critical in this environment.”