American businesses could be in line for refunds exceeding $200 billion if the Supreme Court upholds a recent federal appeals court ruling that President Donald Trump unlawfully imposed sweeping tariffs during his second term.
The case centers on Trump’s use of the International Emergency Economic Powers Act (IEEPA) to levy duties on imports from countries including India, Brazil, and China—at rates as high as 50% and, in China’s case, 145%. The appeals court determined his actions exceeded his legal authority.
As of August 24, US companies had paid more than $210 billion in tariffs now deemed illegal. Trump acknowledged Tuesday that the ruling, if left unchanged, could force the US Treasury to refund those funds. He indicated that his administration is preparing an appeal to the Supreme Court, possibly as soon as Wednesday, to keep the tariffs in place past the October 14 deadline set by the lower court.
“It’s a very important decision, and frankly, if they make the wrong decision, it would be a devastation for our country,” Trump said.
Legal experts warn that even if the Supreme Court sides with the lower court, returning tariff revenue won’t be straightforward. The government could refund all importers, limit refunds to plaintiffs named in the lawsuit, or require businesses to submit administrative claims. Ted Murphy, an international trade lawyer, suggests an administrative process requiring affirmative requests for refunds is the most likely scenario.
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Meanwhile, some companies have already started filing administrative protests with US Customs and Border Protection to prevent tariff entries from fully settling. Thomas Beline, a trade attorney, said this helps prepare for potential future refunds, though he cautioned businesses not to expect immediate repayment.
The Supreme Court is expected to review the case during its upcoming term, which begins next month. Until then, the contested tariffs are likely to remain in effect, leaving businesses in limbo over both financial and operational planning.
If upheld, the ruling would not only challenge Trump’s tariff strategy but also underscore limits on presidential authority under IEEPA, with wide-reaching consequences for international trade and US Treasury collections.
