Companies Prepare for Possible Tariff Refunds

Why this matters: If the Supreme Court rules against the tariffs, companies need to act swiftly to claim their refunds. Preparing now is crucial for a smoother process.

The legal challenge focuses on whether the IEEPA empowers the president to impose tariffs. The outcome could affect a substantial portion of the duties collected this year. Companies are employing various strategies, including lawsuits and petitions, to protect their rights to potential refunds.

Costco's lawsuit highlights the concerns about the impending liquidation of tariffs, which could jeopardize refund eligibility. Other companies, such as Revlon, Ray-Ban, Kawasaki, and Bumble Bee Foods, have also filed similar lawsuits. Ted Murphy, an international trade lawyer, advises companies to maintain detailed records of paid tariffs and consider preemptive protests with the US Customs Department.

The Supreme Court's deliberation includes discussions on the administrative challenges of processing refunds, with Justice Amy Coney Barrett noting the potential for a 'mess.' The Trump administration is expected to resist refund efforts, potentially leading to protracted legal battles.

The International Emergency Economic Powers Act, a 1977 law being reviewed by the Supreme Court to determine if it grants the president authority to impose tariffs.

Companies are filing lawsuits, preparing petitions to the US Customs Department, and meticulously tracking their tariff payments.

The Supreme Court is anticipated to make its final decision in 2026.

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