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.
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