Companies Brace for Supreme Court Tariff Ruling That Could Trigger Massive Refunds
ompanies across the United States are bracing for a potential financial windfall — or further uncertainty — as the Supreme Court prepares to rule on the legality of President Donald Trump’s emergency tariffs. A decision could come as early as this month, and businesses ranging from small manufacturers to major retailers like Costco are already lining up to seek refunds.The case centers on whether Trump exceeded his authority when he imposed sweeping tariffs on Chinese goods under the International Emergency Economic Powers Act. If the justices strike down the move, companies that paid elevated import duties could recover millions in overcharges.For some small businesses, the stakes are existential. Beth Benike, founder of Busy Baby, says her Minnesota-based baby-product company has been struggling ever since the tariffs jolted her supply chain and dramatically increased costs.Benike halted shipments from her Chinese supplier in April, when the administration announced a stunning 145 percent tariff on Chinese imports. The rate sent shockwaves through hundreds of small businesses that rely on overseas manufacturing and could not afford to pay the sudden jump in duties.She kept shipments paused for two months, hoping for relief. That came only partially when Trump later reduced the rate to 30 percent — a far cry from the original hike, but still enough to saddle her company with more than $40,000 in unexpected import fees.“This wasn’t something we could just absorb,” Benike said previously. “The tariffs hit us hard, and we still don’t know whether we’re getting any of that money back.”Benike is one of thousands of business owners now watching the Supreme Court closely. A ruling against the administration would open the door for companies to file retroactive claims, potentially forcing the government to return billions collected under the emergency authority.Large corporations, including national retailers and multinational distributors, have already prepared legal pathways to recover payments if the tariffs are overturned. Smaller firms like Busy Baby, which operate on tighter margins, say those refunds could determine whether they survive.Meanwhile, trade experts say the decision will have sweeping implications for how presidents wield emergency powers in economic conflicts. If the court upholds the tariffs, future administrations may feel emboldened to bypass Congress and impose major trade measures unilaterally. If the court blocks them, it could sharply curtail presidential authority over international commerce. - Getty Image
Companies across the United States are bracing for a potential financial windfall — or further uncertainty — as the Supreme Court prepares to rule on the legality of President Donald Trump’s emergency tariffs. A decision could come as early as this month, and businesses ranging from small manufacturers to major retailers like Costco are already lining up to seek refunds.
The case centers on whether Trump exceeded his authority when he imposed sweeping tariffs on Chinese goods under the International Emergency Economic Powers Act. If the justices strike down the move, companies that paid elevated import duties could recover millions in overcharges.
For some small businesses, the stakes are existential. Beth Benike, founder of Busy Baby, says her Minnesota-based baby-product company has been struggling ever since the tariffs jolted her supply chain and dramatically increased costs.
Benike halted shipments from her Chinese supplier in April, when the administration announced a stunning 145 percent tariff on Chinese imports. The rate sent shockwaves through hundreds of small businesses that rely on overseas manufacturing and could not afford to pay the sudden jump in duties.
She kept shipments paused for two months, hoping for relief. That came only partially when Trump later reduced the rate to 30 percent — a far cry from the original hike, but still enough to saddle her company with more than $40,000 in unexpected import fees.
“This wasn’t something we could just absorb,” Benike said previously. “The tariffs hit us hard, and we still don’t know whether we’re getting any of that money back.”
Benike is one of thousands of business owners now watching the Supreme Court closely. A ruling against the administration would open the door for companies to file retroactive claims, potentially forcing the government to return billions collected under the emergency authority.
Large corporations, including national retailers and multinational distributors, have already prepared legal pathways to recover payments if the tariffs are overturned. Smaller firms like Busy Baby, which operate on tighter margins, say those refunds could determine whether they survive.
Meanwhile, trade experts say the decision will have sweeping implications for how presidents wield emergency powers in economic conflicts. If the court upholds the tariffs, future administrations may feel emboldened to bypass Congress and impose major trade measures unilaterally. If the court blocks them, it could sharply curtail presidential authority over international commerce.
