Businesses Begin Receiving Refunds After Supreme Court Strikes Down Trump Tariffs

First Refunds Land After Supreme Court Tariff Ruling

For Victor Schwartz, owner of wine importer VOS Selections and the lead plaintiff in a landmark Supreme Court challenge to President Donald Trump’s most expansive tariffs, winning in court was only part of the battle. Getting the money back from the federal government once the tariffs were deemed illegal seemed far less certain.

That changed this week. On Wednesday, Schwartz said he received a government deposit of $110,000, representing about 95% of what he believes his business is owed. “This is where the rubber meets the road. This is our win in real terms,” Schwartz told CNN.

The refund is part of a much broader repayment effort now underway across the import economy, with significant financial implications for businesses that previously paid tariffs at the border.

Scope of Repayments: 330,000 Businesses and $168 Billion in Tariff Payments

Schwartz’s company is among roughly 330,000 businesses that are due refunds tied to about $168 billion in prior tariff payments. Those repayments follow the Supreme Court’s February decision overturning the bulk of Trump’s tariffs.

Implementation moved quickly after the ruling. Following the February verdict, a judge ordered US Customs and Border Protection (CBP) to rapidly establish a system capable of issuing refunds in a timely manner.

CBP began redistributing funds to eligible businesses on Tuesday, launching the repayment process at scale.

CBP Launches Refund Portal to Automate Claims

To manage the volume and complexity of repayments, CBP released a new online portal intended to largely automate the refund process for both importers and the government.

Schwartz said that after learning how the system works, he found it “very well done,” noting that he did not have to manually assemble paperwork or hire outside assistance to complete the process.

“The shoutout today goes to Customs and Border Protection,” Schwartz said on Wednesday.

While the payment arrived, Schwartz said he could not confirm whether it included the interest the government was expected to pay. According to Schwartz, the refund receipt was not itemized, making it unclear whether interest was included in the deposit amount.

Cash Flow Impact: Funds Headed to Suppliers

Schwartz said the refunded money would be used immediately to pay suppliers, covering bills that had been delayed as the company worked to stay afloat.

For importers that fronted tariff costs, the timing and clarity of repayments can directly influence working capital, supplier relationships, and near-term budgeting.

Consumer Lawsuits Target Retailers Over Passed-Through Tariff Costs

Even as CBP begins issuing refunds to importers, legal disputes are emerging over whether consumers should also receive compensation.

A number of businesses, including Costco and Nike, are facing lawsuits from individual consumers who argue they are owed money back as well, based on the claim that companies passed along at least some of the tariff burden through higher prices.

CBP’s role in the process is limited: the agency is responsible only for refunding the party listed on the tariff entries. Any decision to provide relief to consumers would be up to the companies involved.

However, the process is not straightforward. Calculating how much of the illegal levies was ultimately paid by customers is described as logistically complex, given differences across products, pricing decisions, and sales channels.

Additional Tariff Battles Continue: 10% Global Import Tax

The refund rollout is not the only major tariff-related issue still moving through the courts.

After the February Supreme Court ruling, Trump enacted a 10% tax across all global imports. Last week, the US Court of International Trade ruled that he lacked the legal authority to impose that tariff.

This week, a federal appeals court reinstated the tariffs while it considers the case, leaving the 10% import tax in place pending a final decision.

Regardless of the outcome, the 10% tariff is scheduled to expire in July. If it lapses, Trump would need support from Congress to reimpose it.

Administration Prepares Additional Levies Under Different Legal Authority

At the same time, the administration is preparing to introduce other levies under a different law. Many experts view that legal basis as less vulnerable to challenge than the 10% tariff and the tariffs reversed by the Supreme Court.

For businesses, the evolving landscape underscores that while refunds are now being issued for past tariff payments, new trade-related costs could still emerge through alternative legal mechanisms.