Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Court ruling on tariffs sets off refund scramble, legal uncertainty; APM Terminals expands Lázaro Cárdenas capacity; and German components maker opens $95M plant in Querétaro, adds 700 jobs.
Court ruling on tariffs sets off refund scramble, legal uncertainty
The U.S. Supreme Court’s decision to strike down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) is setting off a high-stakes legal and operational scramble across the supply chain.
Importers are racing to recover billions in duties while federal agencies and courts work out how refunds will be issued, according to trade attorneys at Venable LLP.
During a recent webinar hosted by Venable, attorneys said the ruling fundamentally reshapes the administration’s tariff authority while leaving key questions unresolved around refunds, timing and future trade policy.
“This decision was broad and clear with respect to the legality of IEEPA-based tariffs,” Venable partner Elizabeth K. Lowe said during the webinar. “But the decision did not speak at all to remedies. That remains an open issue.”
The webinar titled “The End of IEEPA Tariffs: Legal Implications, Refunds, and the Future of U.S. Tariff Policy,” featured Venable partners Lowe, Ashley Craig, and Wes Sudduth, and counsel Neha Dhindsa.
Washington-based Venable LLP operates 13 offices across the U.S. and employs about 850 professionals specializing in regulatory, litigation, corporate, and investigations matters.
The Supreme Court ruled on Feb. 20 that IEEPA does not authorize the president to impose tariffs, including those tied to fentanyl enforcement and migration involving Mexico, Canada and China, as well as broader reciprocal tariffs.
Refunds could total $166B, but process remains unclear
At the center of the fallout is the question of refunds. According to U.S. Customs and Border Protection (CBP) data cited during the webinar, roughly $166 billion in tariffs could be subject to repayment across about 330,000 importers.
But attorneys cautioned that recovering those funds will not be simple.
“There are more questions right out of the gate than we have answers,” Craig said.
CBP has proposed building a new refund mechanism inside its Automated Commercial Environment (ACE), requiring importers to file claims that would be reviewed, recalculated and processed before payments are issued by the Treasury.
Even under an optimistic timeline, the system may take at least 45 days just to launch, with actual refunds likely taking months—or longer—once claims begin flowing.
Court rulings expand eligibility—but create new pressure points
Recent decisions by the U.S. Court of International Trade (CIT) have broadened eligibility for refunds.
On March 4, Judge Richard Eaton ruled that all importers whose entries were subject to IEEPA tariffs are entitled to relief, ordering CBP to liquidate or reliquidate qualifying entries.
However, the ruling also highlights a major limitation: only entries that are unliquidated or still within a 90-day reliquidation window are clearly covered under the administrative process.
That leaves millions of entries—and billions in duties—potentially outside the streamlined refund pathway.
For those cases, Venable attorneys said filing claims at the CIT may be the most reliable option.
“There are some folks who are wanting to be very conservative, belt and suspenders approach, and file protests in addition to going the Court of International Trade route,” Lowe said. “But as Neha mentioned, I do just want to underscore that filing at the CIT is the best way to ensure that you will have access to refunds for all of your entries, regardless of liquidation status.”
Administration signals resistance, delays likely
Despite the court rulings, Venable attorneys said the Trump administration is expected to continue resisting or slowing the refund process.
The Justice Department has already attempted to delay proceedings, and Treasury officials have indicated refunds could take more than a year—even while acknowledging sufficient funds exist.
President Donald Trump has suggested the issue could remain tied up in litigation for years, while officials explore ways to limit payouts or discourage claims.
“I think the overall point is we can expect the administration to push back and to be more candid, to fight tooth and nail, to delay and to carve away as many entries as it can that would ultimately be paid back to importers as refunds,” Sudduth said.
APM Terminals expands Lázaro Cárdenas capacity, launches Phase III
APM Terminals has inaugurated Phase II of its container terminal at Mexico’s Port of Lázaro Cárdenas and announced plans to begin Phase III expansion backed by more than $350 million in new investment.
The newly completed Phase II adds capacity and automation to the terminal, bringing its footprint to 65 hectares and boosting annual throughput capacity to as much as 2 million TEUs, according to the company.
The expansion includes automated yard equipment, electric cranes and advanced cargo tracking systems aimed at improving efficiency, safety and reliability, while supporting more predictable port operations.
Phase III will extend the terminal’s quay by 450 meters—reaching a total of 1,200 meters—and expand yard capacity to handle larger vessels and rising cargo volumes, positioning Lázaro Cárdenas as a growing transshipment hub on Mexico’s Pacific coast.
Company officials said the project is designed to accelerate capacity growth by several years while aligning with decarbonization goals through electrified equipment and renewable energy use.
The expansion is also expected to generate about 4,000 jobs during construction and support more than 1,700 direct jobs by 2029, reinforcing the port’s role as a key logistics node for regional and global supply chains.
German components maker opens $95M plant in Querétaro, adds 700 jobs
German industrial technology firm Phoenix Contact has opened a new manufacturing plant in Querétaro, investing 1.623 billion pesos (about $95 million) and creating 700 jobs.
The facility, located in the Puerta Querétaro Industrial Park, will produce connectors, cables and sensors used in automation, industrial electronics and smart manufacturing, according to MexicoIndustry.
The 236,806-square-food plant is designed to serve the U.S. market, improving delivery times and logistics efficiency as companies continue shifting production closer to North America.
Company officials said the investment is part of Phoenix Contact’s broader strategy to expand its presence in North America while supporting more resilient supply chains.
Facts Only
The U.S. Supreme Court ruled on February 20 that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs.
The ruling affects tariffs tied to fentanyl enforcement, migration, and broader reciprocal tariffs involving Mexico, Canada, and China.
Approximately $166 billion in tariffs could be subject to refunds across about 330,000 importers.
U.S. Customs and Border Protection (CBP) proposes a new refund mechanism within its Automated Commercial Environment (ACE) system.
The refund process may take at least 45 days to launch, with actual payments potentially taking months or longer.
A March 4 ruling by the U.S. Court of International Trade (CIT) stated that all importers subject to IEEPA tariffs are entitled to relief.
Only unliquidated entries or those within a 90-day reliquidation window are clearly covered under the administrative refund process.
The Trump administration is expected to resist or delay the refund process, with officials suggesting it could take over a year.
APM Terminals has completed Phase II of its Lázaro Cárdenas container terminal expansion, increasing capacity to 2 million TEUs annually.
Phase III of the Lázaro Cárdenas expansion will extend the terminal’s quay by 450 meters and expand yard capacity, supported by $350 million in investment.
Phoenix Contact has opened a $95 million manufacturing plant in Querétaro, creating 700 jobs.
The Querétaro plant will produce connectors, cables, and sensors for automation and industrial electronics.
Executive Summary
The U.S. Supreme Court recently struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), triggering a complex legal and operational scramble for importers seeking refunds. Trade attorneys highlight that while the ruling invalidates the tariffs, the process for recovering an estimated $166 billion in duties remains unclear, with federal agencies proposing new refund mechanisms that could take months or longer to implement. Recent court rulings have expanded eligibility for refunds, but many entries may fall outside the streamlined process, requiring importers to pursue claims through the U.S. Court of International Trade. Meanwhile, the Trump administration is expected to resist or delay refunds, potentially prolonging litigation.
In Mexico, APM Terminals has completed Phase II of its Lázaro Cárdenas container terminal expansion, increasing capacity to 2 million TEUs annually and introducing automation to improve efficiency. The company plans a $350 million Phase III expansion to further enhance the port’s role as a transshipment hub. Additionally, German industrial firm Phoenix Contact has opened a $95 million manufacturing plant in Querétaro, creating 700 jobs and supporting North American supply chains with faster delivery times.
Full Take
The Supreme Court’s ruling on IEEPA tariffs represents a significant legal and operational disruption, exposing the fragility of trade policy mechanisms and the potential for prolonged bureaucratic and political resistance. The strongest version of this narrative highlights the court’s clear rejection of executive overreach while acknowledging the administrative chaos that follows—billions in refunds, uncertain timelines, and a Trump administration likely to exploit delays. The pattern here aligns with **ARC-0024 Ambiguity**, where the lack of clarity on refund mechanisms creates a power vacuum that the administration can weaponize to discourage claims. The legal uncertainty also mirrors **ARC-0043 Motte-and-Bailey**, where the broad ruling against tariffs (the motte) contrasts with the narrow, contested pathways for refunds (the bailey).
Rooted in this is a deeper tension: the clash between judicial checks on executive authority and the administrative state’s capacity to resist or slow-walk compliance. The implications for human agency are stark—importers face a labyrinth of legal and bureaucratic hurdles, while the administration’s resistance risks eroding trust in the rule of law. The second-order consequences could include a chilling effect on future trade disputes, as businesses weigh the costs of litigation against uncertain outcomes.
Meanwhile, the expansions in Mexico’s logistics and manufacturing sectors signal a strategic shift toward nearshoring, with foreign investment flowing into infrastructure and production hubs. Yet, the question remains: how resilient are these supply chains to political and legal volatility in the U.S.? What if the refund process becomes a precedent for future trade disputes, incentivizing governments to exploit legal gray areas?
Counterstrike scan: If this were a coordinated influence campaign, the playbook would involve amplifying the chaos of the refund process to undermine confidence in judicial and administrative systems, while framing the administration’s resistance as a defense of national interests. The actual content does not fully match this pattern—it reports the facts without overt manipulation—but the structural alignment between administrative delays and political messaging is worth watching. The narrative could be weaponized to either praise judicial restraint or decry bureaucratic overreach, depending on the audience.
Patterns detected: **ARC-0024 Ambiguity**, **ARC-0043 Motte-and-Bailey**
Sentinel — Human
The article exhibits strong signals of human authorship, including direct quotes, specific details, and natural phrasing. No significant indicators of synthetic generation were detected.