The Trump administration is currently considering a range of options that would allow it to keep billions in tariff revenue collected under the International Emergency Economic Powers Act (IEEPA), according to Politico. Last week, the Supreme Court declared that tariffs collected under the measure were illegal.
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Trade QQQ with leverageOfficials are weighing several options, including an argument that asserts tariffs collected over the past year comply with a new set of duties the administration is now implementing under alternative laws. Another option on the table is for companies to receive priority in the refund process by agreeing to give up some of the funds to the government.
Companies Expected to Face a Lengthy Battle for Tariff Refunds
The Supreme Court did not provide guidance on how a potential refund process would play out, leaving the outcome to a lower court. Several companies have already filed lawsuits to collect refunds, including Costco (COST) and FedEx (FDX).
“Obviously courts will not like it if the government not only doesn’t honor its word, but then makes everybody file a lawsuit to get the refund,” said Jeffrey Schwab, a lawyer for VOS Selections. VOS was one of the companies that sued the administration over IEEPA tariffs.
Legal experts expect a complicated and lengthy refund process. The government has collected over $133 billion in tariffs since Trump’s sweeping tariffs took effect.