Supreme Court ruling triggers billions in tariff refunds for US businesses
Businesses across the US have begun receiving refunds on import tariffs after a Supreme Court ruling struck down higher taxes imposed by former President Donald Trump. The decision declared Trump’s use of the 1977 International Emergency Economic Powers Act unconstitutional, paving the way for claims totalling billions of dollars.
The first refunds arrived in bank accounts on May 12, just three weeks after an online claims system opened for importers and customs brokers. The refund process, managed by U.S. Customs and Border Protection, initially ran smoothly. By May 22, applications worth $85 billion had been submitted, with $20.6 billion already paid out to businesses. However, the Trump administration later announced plans to appeal a federal judge’s order, which required all companies that paid the invalidated duties to be eligible for refunds.
Major retailers like Walmart and Costco have confirmed they will pass savings on to customers, either by cutting prices or returning costs to members. Meanwhile, smaller firms such as Basic Fun and Manscaped have received partial refunds, with more still pending. Greenbar Distillery, another claimant, has secured refunds for some but not all of its submissions.
The Supreme Court’s ruling only invalidated the country-specific tariff rates Trump introduced under the 1977 Act. Other tariffs imposed under different legal justifications remain in place. The dispute intensified when the Trump administration objected to a court demand for CBP Commissioner Rodney Scott to testify about the refund process.
Shipping giants FedEx, UPS, and DHL, which acted as customs brokers, have committed to returning any refunds they receive to the customers who originally paid the import taxes. The refunds mark a significant financial shift for businesses that paid higher tariffs under Trump’s policy. Consumers may soon see the effects, as some companies plan to lower prices or issue rebates. The appeal process, however, could delay further payouts for those still awaiting funds.
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