Supreme Court ruling opens $175bn tariff refunds

The Supreme Court's February 2025 decision declared that Trump's tariffs were unconstitutional, marking a landmark separation-of-powers ruling. According to major media reports, the ruling could lead to refunds of up to $175 billion for businesses that paid the import taxes. In March, the US Court of International Trade ordered customs officials to refund more than $160 billion in tariffs, a figure that may differ from the $175 billion estimate due to interest or accounting methods. The refund process began in earnest on Monday, April 14, when US Customs and Border Protection (CBP) launched an online portal at 8 am ET. Major media reported that as of April 14, some 56,497 importers had registered for the refund system, with eligible claims totaling $127 billion including interest. More than 330,000 importers paid a combined $166 billion across more than 53 million shipments under the tariffs, according to major media reports.

The first phase of refunds covers only tariffs that were estimated but not finalized, or within 80 days of a final accounting, as reported by major media. If a claim is approved, businesses face a 60-to-90-day wait for the money, according to major media reports.

Household names already filing claims include Costco, Toyota, Goodyear, Xerox, Steve Madden and Bath & Body Works, according to law firm Clark Hill, as reported by major media. More than 3,000 cases are now before the US Court of International Trade covering the full spectrum of industries, according to major media. Online fashion retailer Asos is seeking refunds for the £7 million worth of tariffs it paid in the first half of its financial year, as reported by major media. Asos made a pre-tax loss of £137.9 million in the six months to 1 March, compared with a £241.5 million loss a year earlier, according to major media.

Technology, media and telecoms firms stand to gain the most with an estimated $47.6 billion in potential refunds, according to PwC, as reported by major media. Class-action lawsuits are working through the courts targeting companies including Costco and Ray-Ban maker Essilor Luxottica, according to major media. Businesses receiving refunds are under no obligation to share the proceeds with customers, as reported by major media.

Small businesses have faced significant challenges from the tariffs. According to The Guardian - Business, Elizabeth Vitanza described that all modern brands they work with have raised prices at least 12% over the past year. According to The Guardian - Business, Rob Coughlin described that the company's duty fee jumped from 18% to 46% after Trump's reciprocal tariffs, then lowered to 20% in August. According to The Guardian - Business, Dr Charlie Elrod described that tariffs raised costs by about $1 million in the last year. According to Euronews, Brad Jackson described that his company absorbed $34,000 in tariff costs last year.

Some businesses reported a smooth experience with the refund portal, while others received error messages, according to major media.

Several unknowns remain. How many businesses will successfully receive refunds given the strict application requirements is unclear. Will consumers see any benefit from the refunds, or will businesses keep the money? How long will the legal battles over tariff refunds last, as Trump suggested years? What is the total amount of refunds that will actually be paid out, given potential rejections? How will the refund process affect small businesses' cash flow in the short term?