IEEPA / Tariff Recovery for Real Estate

Did You Pay Upstream Tariff Surcharges on Your 2025 Projects?

If your firm had active development, multifamily construction, or capital improvements underway during 2025, your material invoices likely absorbed steep pass-through surcharges for emergency import tariffs that have now been declared unlawful.

Following the Supreme Court's ruling, U.S. Customs is currently refunding $165B+ in duties (plus interest) via the CAPE portal.

The Problem: The government sends refund checks to the Importer of Record (your suppliers, contractors, and material vendors)—not to the developer who actually funded the cost.

Here is a breakdown on the items subjected to the IEEPA tariffs (note that in some cases there are multiple duties "stacked")

Pure IEEPA Coverage (100% Refundable Delta):

• HVAC, MEP, & Conveying: VRF systems, chillers, elevators, pumps, and switchgear (HTS Ch. 84, 85).
• Stone, Tile & Slabs: Porcelain, marble, and sintered stone (HTS Ch. 25, 68, 69).
• Architectural Hardware & Finishes: Card-locks, panic bars, plumbing brassware, and doors (HTS Ch. 44, 74, 83, 84).
• Solar & EV Infrastructure: Inverters, charging stations, and BESS containers (HTS Ch. 85).

The Dual-Authority "Stacking" Exceptions (Crucial for Steel & Aluminum):

• Structural Steel, Rebar, & Aluminum Panels (HTS Ch. 72, 73, 76): In 2025, raw steel and aluminum were hit under Section 232 (National Security, 25%–50%), while downstream finished components and non-covered metals absorbed the IEEPA surcharge.
• Section 232 duties remain active, but the layered IEEPA surcharge portion is the refundable piece being clawed back.

The USMCA Rule of Origin Carve-Out (Canada/Mexico):

• Lumber (HTS Ch. 44) or drywall sourced from Canada/Mexico that fully satisfied USMCA origin rules entered tariff-free.
• Any non-qualifying mill runs, third-party transshipments, or goods from Europe, South America, and Asia took the full IEEPA hit.

 Vendors / suppliers that you paid pass-through duties to cannot legally retain government refunds for costs they passed downstream to you. In fact, even if they did not apply for tariff refunds, you may still have a case for repayment.

WHAT WE DO

We will audit your 2025 Construction in Process (CIP) and paid vendor invoices, trace the line items directly against customs entry data, and execute structured clawback claims to recover your flow-through credits.

Our fees are primarily success based, meaning we do not charge if you do not recover funds. 

There may be an analysis fee in certain complex cases, which will be disclosed up-front. 

Please email us with any questions: IEEPA@erkletree.llc

 Disclaimer: The information provided on this website and during our consulting services is for general informational and data-reconciliation purposes only and does not constitute legal, tax, or official customs advice. We are not an attorney, law firm, or licensed customs brokerage, and our services do not establish an attorney-client relationship. You should consult with qualified legal counsel or a licensed trade advisor regarding your specific contractual rights, statutory deadlines, or legal remedies.