Tarif Dispute Update

The Supreme Court is hearing a case challenging tariffs imposed by the Trump administration, with nearly $90 billion in collected revenue at stake. If the justices rule in favor of the challenged businesses, the process for refunding tariffs is unclear. While the five businesses represented by Thomas Beline are likely to be entitled to refunds, other businesses may need to file separate appeals with lower courts. CBP’s complex tariff code and a lengthy liquidation process could delay final figures. To expedite refunds, importers could request liquidation extensions or file protests with CBP. Investment banks are actively seeking to purchase importers' potential tariff stakes at a discount, anticipating a cut of the refund if the administration loses. Some importers, particularly those facing financial strain, have accepted offers of 5-7% of a potential refund, driven by a fear of further action from the administration. The potential refunds could include statutory interest, and the process is expected to be complex and potentially lengthy.