Business groups seek quick tariff refunds after Supreme Court ruling

Business groups seek quick tariff refunds after Supreme Court ruling

The U.S. businesses that paid billions in tariffs to the federal government want their money back.

After the U.S. Supreme Court found President Donald Trump exceeded his authority under a 1977 law, business groups quickly called for refunds of these tariffs.

The high court decision affects Trump’s tariffs enacted under the International Emergency Economic Powers Act. Trump had used the law to impose tariffs on nearly every imported product from every country.

Neil Bradley, executive vice president at the U.S. Chamber of Commerce, said the ruling was good news for U.S. businesses and consumers.

“Swift refunds of the impermissible tariffs will be meaningful for the more than 200,000 small business importers in this country,” he said.

The nation’s largest business lobby also asked for a full reset on tariffs.

“We encourage the administration to use this opportunity to reset overall tariff policy in a manner that will lead to greater economic growth, larger wage gains for workers, and lower costs for families,” Bradley said.

The Penn Wharton Budget Model estimated the Supreme Court ruling will generate up to $175 billion in refunds.

Getting that money won’t be easy. International Chamber of Commerce Secretary General John Denton warned that refunds could be challenging.

“Companies should not expect a simple process: the structure of U.S. import procedures means claims are likely to be administratively complex,” he said. “[The] ruling is worryingly silent on this issue and clear guidance from the Court of International Trade and the relevant U.S. authorities will be essential to minimize avoidable costs and prevent litigation risks.”

Trump sharply criticized the Supreme Court’s decision on Friday before announcing a new set of tariffs under different laws to replace the import duties invalidated by the high court. He also criticized the Supreme Court for its silence on the issue of refunds. He said that failure by the high court could mean refunds end up in court disputes for years.

Gary Shapiro, CEO of the Consumer Technology Association, a trade group, said “the government must act quickly to refund retailers and importers without red tape or delay.”

Some businesses filed for refunds even before the Supreme Court ruling.

Warehouse retailer Costco filed a lawsuit in December to hold its place in the refund line, where other companies were already waiting. Costco noted a separate lawsuit was needed because importers “are not guaranteed a refund for those unlawfully collected tariffs in the absence of their own judgment and judicial relief.”

The request hints at a complicated refund process for a share of the billions in tariffs the federal government collected in fiscal year 2025. Supreme Court Justice Amy Coney Barrett said refunds could be a “mess” during oral arguments in November.

U.S. Sen. Maria Cantwell, D-Wash., wrote a letter to Treasury Secretary Scott Bessent seeking a “detailed explanation” of how the refund process would work.

“Many American businesses, especially small and medium-sized businesses, have struggled to pay these illegal tariffs and, for some, the financial strain has placed them on the brink of bankruptcy,” she wrote in the letter. “It is essential [that the Treasury Department] implement an expeditious and transparent process to remediate the financial harm that resulted from these illegal tariffs.”

Illinois Gov. J.B. Pritzker, a Democrat with plans for higher office, demanded a refund of $8.6 billion for all families in his state.

“On behalf of the people of Illinois, I demand a refund of $1,700 for every family in Illinois,” the governor wrote, threatening further action if the White House failed to comply.

Recent economic research has found that Americans are picking up the cost of tariffs. A report from the Federal Reserve Bank of New York confirmed “U.S. firms and consumers continue to bear the bulk of the economic burden of the high tariffs imposed in 2025,” according to a report from the Federal Reserve Bank of New York. Other studies have reported similar findings on the impact of the tariffs. The Kiel Institute for the World Economy found that Americans are paying almost the entire cost of tariffs.

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