Company leaders, customs experts, and legal professionals are preparing for a crucial decision from the Supreme Court regarding the legality of the extensive global tariffs implemented by U.S. President Donald Trump. There is a potential battle looming over the retrieval of up to $150 billion in refunds from the U.S. government for tariffs already paid by importers in case of an unfavorable ruling for Trump.
Speculation has increased that the court might invalidate the tariffs imposed by Trump under the International Emergency Economic Powers Act of 1977, especially after conservative and liberal justices expressed doubts during the November hearings about the president’s authority to impose such duties.
While the court is anticipated to announce its rulings on Friday, the specific cases to be addressed have not been disclosed yet.
Several companies are bracing for challenges in reclaiming refunds even if the tariffs are deemed invalid. Jim Estill, the CEO of Danby Appliances, a Canadian company selling household appliances manufactured in China and other countries subject to Trump’s tariffs, expressed concerns about the potential complexities of securing a $7 million refund and potential demands from retailers like Home Depot.
President Trump is the first to utilize the International Emergency Economic Powers Act for tariffs, a law traditionally used for imposing sanctions on adversaries or freezing their assets. These tariffs have reportedly generated around $133.5 billion in collections between February and December 14, 2025, and are estimated to reach close to $150 billion based on recent data from U.S. Customs and Border Protection.
U.S. Treasury Secretary Scott Bessent remains confident in the Supreme Court’s support for Trump’s actions, while U.S. Trade Representative Jamieson Greer suggests that any lost revenues from invalidated tariffs could be offset by new tariffs imposed under different legal frameworks by the president.
The refund process for importers hinges significantly on the Supreme Court’s guidance on whether refunds will be addressed directly or referred to lower courts like the Court of International Trade. Notably, importers generally have a limited timeframe to correct import data before being prohibited from claiming refunds. Some companies, including Costco, have proactively initiated legal actions to safeguard their refund rights.
Experts advise companies to maintain meticulous records and act promptly to secure potential refunds. Despite uncertainties surrounding the refund process, a recent technical adjustment by U.S. Customs and Border Protection indicates a willingness to facilitate refunds if the Supreme Court rules against Trump’s tariffs.
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