The U.S. Supreme Court dealt a major blow to former President Donald Trump's trade agenda, ruling that his use of emergency powers to impose sweeping tariffs was unlawful. But the real battle is just beginning, as importers now face a chaotic fight to recoup the estimated $175 billion in tariffs the government has collected over the past several years.
What this really means is that businesses large and small across the country are gearing up for a drawn-out legal battle to get their money back. The Supreme Court's ruling provided little guidance on the refund process, leaving it up to lower courts and the U.S. Customs and Border Protection agency to sort out the details. As ABC News reports, trade lawyers are warning that the path to refunds will be a "bumpy ride" with "significant consequences for the U.S. Treasury."
A Tangled Web of Lawsuits
The bigger picture here is that the sheer scale of the tariff collections means unwinding them will be an enormous administrative challenge. As CNBC notes, more than 1,000 lawsuits have already been filed by importers seeking refunds, and many more are expected.
Each company that paid the illegal tariffs will likely have to sue individually in the specialized U.S. Court of International Trade to recoup their money, rather than through a class action. And given the Trump administration's stance that refunds would be a "complete mess," it's clear importers will have to fight tooth and nail to get their funds back.
Uncertainty Ahead
The bottom line is that the path forward is highly uncertain. As dissenting Justice Brett Kavanaugh acknowledged, the refund process is likely to be a "mess" that could have "significant consequences" for government finances. Importers may face delays, denials, and a drawn-out legal battle just to see a fraction of what they're owed.
What this means is that businesses will have to brace for continued disruption and uncertainty in the months and years ahead as this epic tariff refund saga plays out. As CNN Business reports, the Supreme Court may have ruled against Trump's tariffs, but the real fight is just beginning.