Importers face $150 billion tariff refund fight if Supreme Court rules against Trump

Companies, brokers and trade lawyers are awaiting a Supreme Court decision on whether tariffs imposed under the International Emergency Economic Powers Act were lawful, and that outcome could trigger disputes over roughly $150 billion in collected duties.

Trade professionals are preparing for a U.S. Supreme Court decision on tariffs President Donald Trump imposed using the International Emergency Economic Powers Act. The court heard arguments in November and justices questioned whether that law allowed the tariffs. If the court rules the tariffs unlawful, companies and brokers expect disputes over refunds of duties already collected. The potential refunds have drawn attention because the collections are substantial. Key points: - The Supreme Court is expected to issue rulings on Friday, but it has not said which cases will be acted on. - The tariffs were imposed under IEEPA, a law historically used for sanctions and asset freezes; this is the first time the law was used to levy tariffs. - U.S. Customs and Border Protection reported estimated collections of $133.5 billion between Feb. 4 and Dec. 14; Reuters calculated that collections are estimated to be approaching $150 billion based on recent daily rates. - Customs disclosed a technical change to shift all tariff refunds to electronic distribution effective Feb. 6, a move observers say could affect how refunds are processed if the court orders them. Summary: If the Supreme Court rules the tariffs unlawful, importers could seek refunds for duties that Reuters estimates may be approaching $150 billion. U.S. Customs' planned shift to electronic refund distribution on Feb. 6 is being viewed as preparation for handling refunds. The Supreme Court is expected to issue rulings on Friday, and further administrative or legal steps would depend on that decision.