Democrats, Retailers Push for Refunds Following Supreme Court Ruling on Tariffs

A group of about 20 Senate Democrats on Monday revealed legislation calling for full refunds following the Supreme Court ruling that President Donald Trump's imposed tariffs were illegal. Separately, FedEx filed a lawsuit on Monday demanding a full refund, according to the BCC.

The Supreme Court ruling last week — which said that Trump overstepped the president's authority when he issued broad tariff rates on U.S. trade partners under the International Emergency Economic Powers Act — has raised questions around whether retailers and U.S. consumers will see any financial relief from the ruling.

A press release from the Democrats who raised the legislation, led by Sen. Ron Wyden, D-OR, said the Trump administration had collected an estimated $175 billion in tariffs that have now been deemed illegal and should be refunded. The bill requires US Customs and Border Protection to pay refunds on all tariffs imposed under the IEEPA and paid by importers, and sets a deadline of 180 days after the bill's enactment for CBP to process all funds. It also requires CBP to pay interest on the refunded amount.

Meanwhile, Trump imposed new 10 percent global tariffs following the Supreme Court ruling, which went into effect at midnight Tuesday (Trump originally said the rate would be 15 percent). He cited a section of the 1974 Trade Act for the tariff enactment.

Total Retail's Take: Several retailers and brands pre-emptively sued the administration before the Supreme Court ruling to demand refunds in the event that the Supreme Court ruled the tariffs illegal, including Costco, Revlon, EssilorLuxottica, Kawasaki, Bumble Bee, and more. Reuters reported that trade attorneys said the volume of cases seeking refunds for tariffs has reached more than 1,800 already.

Many retailers have been absorbing tariff costs, partially passing them through to consumers, or renegotiating vendor agreements to offset the impacts. If refunds are issued, especially with interest, as proposed, companies that proactively filed claims could see meaningful cash infusions. Retailers that raised prices are unlikely to decrease them as consumers have gotten used to them, but could use the refunds as a short-term promotional lever.