Trump Confronts 2,000 Tariff Lawsuits After Supreme Court Defeat
In the wake of a landmark Supreme Court decision that declared most of former President Donald Trump's global tariffs illegal, a surge of legal action has erupted, with more than 2,000 lawsuits now filed by importers seeking refunds of billions of dollars in duties. This legal onslaught highlights deep-seated concerns that the administration may resist or complicate the refund process, potentially triggering a protracted battle in the courts.
Major Corporations Join the Legal Fray
Public companies and household names are increasingly adding their voices to the clamor for refunds. In recent days, FedEx Corp. initiated a lawsuit, followed swiftly by other prominent firms including Dyson Inc., Dollar General Corp., Bausch & Lomb Inc., Brooks Brothers, and Sol de Janeiro USA Inc. Additionally, subsidiaries of cosmetic giant L'Oreal SA and shoe manufacturers On Holding AG and Skechers USA Inc. have filed suits to recover payments made on imports.
FedEx issued a statement clarifying its position, noting that it has taken necessary steps to protect its rights as an importer to seek duty refunds following the Supreme Court's ruling. The company emphasized that if refunds are granted, they will be passed on to the shippers and consumers who originally bore those charges.
Uncertainty Over Refunds and Government Response
The Supreme Court's decision left the critical question of refunds unresolved, deferring that matter to the New York-based U.S. Court of International Trade. This has created a legal vacuum, with importers anxiously awaiting clarity on how and when they might recoup their payments.
Trump has publicly suggested that his administration might oppose refunds or at least not facilitate the process for importers, who have paid over US$170 billion in tariffs in the past ten months. In remarks made after the February 20 ruling, Trump speculated that the issue could take years to litigate, indicating a potential drawn-out legal struggle.
The Justice Department is expected to weigh in on immediate next steps in the original litigation that reached the Supreme Court, which could signal the government's willingness to address the mounting claims promptly or delay resolution.
Impact on Businesses and Legal Landscape
While many large public companies have been able to adapt by shifting supply chains, negotiating with vendors, or absorbing tariff costs, smaller businesses often lack such flexibility or influence. Consequently, most of the lawsuits have been initiated by smaller enterprises, though the entry of major corporations like FedEx is creating additional momentum for others to file suit.
Trade lawyers note that when smaller businesses see filings from large companies with in-house legal teams and Washington connections, it encourages them to take action, believing these firms may have insider knowledge. Moreover, there is a perceived political safety in numbers; involvement from giants like FedEx and Costco reduces fears of retaliation from the White House, according to legal experts.
Representatives for the other companies involved have largely declined to comment or did not respond to requests, and spokespeople for the Justice Department and White House have also remained silent on the matter.
Broader Implications and Future Outlook
The total number of tariff lawsuits has now surpassed 2,000, according to a Bloomberg News analysis, presenting a substantial caseload for the trade court to manage. This figure represents only a small fraction of the hundreds of thousands of importers who paid the tariffs that were struck down by the justices, suggesting the potential for even more legal action in the future.
As the refund battle intensifies, it could set precedents for other legal fights and influence trade policies moving forward. The outcome will not only affect the financial bottom lines of countless businesses but also shape the regulatory environment for international trade in the United States.
