Customs brokers, trade lawyers, and corporate executives are preparing for a Supreme Court decision on the validity of President Donald Trump’s broad global tariffs, potentially leading to a battle for reclaiming up to $150 billion in refunds from the U.S. government for duties previously paid by importers. The belief that the court might invalidate the tariffs imposed by Trump under the International Emergency Economic Powers Act of 1977 grew after conservative and liberal justices expressed doubts about the law granting him the power to impose the duties during the November hearings.
While companies foresee challenges in obtaining refunds if Trump’s tariffs are struck down, there are concerns that the government may not readily facilitate the reimbursement process. Jim Estill, CEO of Danby Appliances, expressed skepticism about the government’s willingness to return funds, mentioning that Trump might not be inclined to do so. Danby Appliances, which imports products from China and other countries subject to the tariffs, is estimated to be eligible for a $7 million refund, but uncertainties remain regarding potential claims from retailers like Home Depot.
President Trump’s implementation of tariffs under the International Emergency Economic Powers Act marked a historical use of the legislation, which had typically been employed for imposing sanctions on U.S. adversaries or freezing their assets. The tariffs imposed under this act yielded an estimated $133.5 billion in collections between February 4 and December 14, 2025, with total collections nearing $150 billion based on the average daily rates from late September to mid-December.
U.S. Treasury Secretary Scott Bessent has expressed confidence in the Supreme Court upholding Trump’s tariffs, while U.S. Trade Representative Jamieson Greer suggested that any lost revenues could be recovered through new tariffs imposed by Trump under alternative legal frameworks if refunds are required. The refund process, contingent on the Supreme Court’s guidance, may involve the Court of International Trade for resolving refund rights, particularly for importers facing deadlines for corrections before their imports are finalized without refund possibilities.
Certain companies, such as Costco, have proactively filed lawsuits against U.S. Customs and Border Protection to safeguard their potential refund entitlements, anticipating challenges in reclaiming unlawfully collected tariffs even if the Supreme Court rules against the duties. Despite hopes for a streamlined refund process following a technical adjustment by CBP, concerns persist regarding potential delays or obfuscation by the Trump administration in reimbursing importers. Trade advisory experts advise companies to maintain detailed records and act promptly to optimize their chances of receiving refunds efficiently.
As firms brace for potential legal battles and navigate the complexities of refund claims, the outcome of the Supreme Court ruling on Trump’s tariffs looms large, impacting the future of trade relations and financial implications for importers affected by the duties.