A U.S. Supreme Court decision rejecting President Donald Trump’s authority to impose tariffs under a national emergency law is expected to trigger a surge of refund claims from companies seeking to recover billions in duties paid over the past year.
The ruling, issued Friday, concluded that the president lacked the authority to levy the tariffs under the statute cited by the administration. The decision casts doubt on an estimated $175 billion in customs revenue collected since last April, when the tariffs were first announced.
Litigation is now shifting to the U.S. Court of International Trade in New York, where importers have two years from the date of payment to file lawsuits seeking refunds. Trade attorneys say more than 1,800 cases have already been filed, and that number is likely to climb sharply in the coming weeks.
Major Washington law firms have mobilized large legal teams to pursue claims on behalf of corporate clients. Crowell & Moring has filed at least 150 refund cases since the tariffs were announced, representing companies such as Costco, Revlon and EssilorLuxottica. Sidley Austin has also appeared in more than 150 lawsuits, acting for brands including J. Crew, Illumina, Dole and Diageo.
Smaller trade-focused firms are also heavily involved. Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt has filed more than 300 cases, representing luxury brands such as Prada and Dolce & Gabbana. Other boutique firms report dozens to more than 100 cases pending.
Attorneys say companies are moving quickly to preserve their right to refunds amid legal uncertainty. One major question is whether the trade court can issue nationwide rulings that would apply broadly across importers, or whether relief will be limited to companies that file individual suits. The Justice Department is expected to contest efforts to secure sweeping injunctions.
Even if the federal government ultimately agrees that refunds are owed, lawyers say the mechanism for returning funds remains unclear. The potential financial exposure for the Treasury could be substantial if courts rule broadly in favor of importers.
Despite the Supreme Court’s decision, Trump signaled he intends to pursue additional tariffs and predicted prolonged legal battles over refund claims. Trade lawyers now anticipate years of litigation as businesses seek to recover what they argue were unlawfully imposed duties.
Source: Reuters