Companies caught in the complexity of tariff refunds

US business leaders are trying to figure out how to get refunds for the levies they have paid since President Donald Trump’s tariffs took effect.

The Supreme Court ruled last week that President Donald Trump cannot impose tariffs under IEEPA without Congressional approval, implying that the levies must go and that firms that have paid those duties are eligible to reclaim them. However, the court did not outline a clear path for how to proceed.

Even before the ruling was out, businesses had been trying to reclaim the levies they had paid.

Ever since Trump’s historic tariff announcement last April, several companies, including Costco, J. Crew, Revlon, and others, have filed refund cases.

The ruling offers a small win. The US Chamber of Commerce noted that swift “refunds” could help the 200,000 small-business importers it represents.

However, there is no guidance on refunds. Treasury Secretary Scott Bessent warned that litigation for reclaiming payments could stretch for months.

Executives at companies like Ethan Allen and Chicken of the Sea that import from Southeast Asian nations are confused about whether to continue paying levies or wait for more clarity on refunds.

For others, the news arrived too late. Nils Skiwear is shuttering operations after 47 years, unable to absorb the costs of the tariffs.

President Trump has complicated matters by announcing a new 15% global tariff under a different legal authority.