American businesses are claiming victory after the U.S. Supreme Court struck down President Trump’s emergency tariff program, though getting their money back won’t happen overnight.
The high court determined that Trump overstepped his authority when he used the 1977 International Emergency Economic Powers Act to impose sweeping import duties. This landmark ruling could send shockwaves through the global marketplace for years to come.
Companies have been scrambling to adapt to Trump’s constantly changing trade strategies, where tariffs became a go-to tool not only for trade disputes but also to pressure foreign governments on various issues.
The financial stakes are enormous. Economists from the Penn-Wharton Budget Model estimate that more than $175 billion in collected tariffs could now be eligible for refunds, affecting thousands of companies whether they challenged the administration in court or not.
Stock markets responded favorably to the news, with European luxury companies like LVMH, Hermes, and Italian outerwear brand Moncler all seeing their share prices climb following the decision.
Industries hit hardest by the tariffs include consumer products, automotive manufacturing, and clothing companies that rely heavily on affordable production facilities in China, Vietnam, India, and other international manufacturing centers. These import duties increased costs for bringing in both finished products and component parts, cutting into profit margins and disrupting carefully coordinated global supply networks.
Legal activity has exploded since the tariffs took effect. More than 1,800 tariff-related lawsuits have been submitted to the U.S. Court of International Trade since April, compared to fewer than 24 such cases throughout all of 2024.
Major companies taking legal action include divisions of Japan’s Toyota Group, warehouse retailer Costco, tire manufacturer Goodyear, aluminum producer Alcoa, Japanese motorcycle company Kawasaki Motors, and French eyewear giant EssilorLuxottica.
Legal representatives expect many more global companies to file lawsuits now that the ruling is final, as many held back to avoid drawing unwanted government attention. These new plaintiffs will join a lengthy queue of businesses that may wait months or even years to recover billions in import duties. Attorneys say companies that filed early lawsuits will likely receive their refunds faster.
Nabeel Yousef, a partner at Freshfields law firm, explained the complexity ahead: “Companies face the challenge of gathering detailed import data to calculate the tariffs paid under various regimes, which were applied over different time periods. Even multinational firms may not have all their data neatly organized.” He cautioned that despite Friday’s ruling, “on Monday, companies are going to start getting checks in the mail.”
These elevated tariffs have increased expenses for consumers already struggling with years of post-pandemic price increases. The Federal Reserve Bank of New York reported last week that American consumers and businesses absorb 90% of Trump’s tariff costs, contradicting the White House’s claims that foreign entities pay these fees.
By November, the actual U.S. tariff rate had reached 11.7%, a dramatic increase from the 2.7% average between 2022 and 2024, according to Yale Budget Lab data.
Initially, some companies hesitated to challenge Trump’s tariff policies, but attitudes changed after November’s Supreme Court hearing, where multiple justices questioned Trump’s legal reasoning for his expansive trade actions.
The U.S. Court of International Trade will likely handle the logistics of processing refunds. Meanwhile, Trump administration officials indicate they will continue imposing tariffs through other legal channels, including laws designed to combat unfair trade practices or protect industries vital to national security.
Ted Murphy, who co-leads Sidley Austin’s global arbitration, trade and advocacy practice, noted: “It’s not like tariffs are going away. They’re just going to be under a different umbrella.”
The automotive industry will continue facing substantial tariffs that weren’t imposed under the 1977 emergency powers law. For instance, 25% import duties on vehicles from Mexico and Canada, implemented last year citing national security concerns, remain in effect.
However, lawyers point out that thousands of auto parts imported from countries subject to Trump’s reciprocal tariffs are still being charged these duties, inflating costs for both parts suppliers and car manufacturers.
Some American companies, expecting lengthy refund delays, have chosen to sell their refund rights to outside investors. This arrangement involves accepting immediate payments of roughly 25 to 30 cents per dollar owed while giving up any additional recovery to investors if the tariffs are overturned, as Reuters reported in December.
German shipping company DHL announced it will utilize its technology systems to help customers receive refunds “accurately and efficiently” once they’re approved.
It remains uncertain whether companies will reduce prices to help middle- and lower-income American consumers who have cut back spending due to higher costs.
Jason Cheung, CEO of small toy company Huntar Co and one of the lawsuit plaintiffs, said: “We would definitely be filing for a refund as I imagine every other importer would. I highly doubt prices will go down though. That rarely occurs.”
