U.S. firms tiptoe on tariff refunds

U.S. companies are trying to recover billions of dollars in Trump-era tariffs without drawing too much attention to it. The caution reflects two overlapping risks: litigation from customers or other downstream buyers, and concern about political retaliation from President Donald Trump after courts struck down many tariffs imposed under the International Emergency Economic Powers Act, or IEEPA. (businesstimes.com.sg) The legal opening came after the U.S. Supreme Court ruled on February 20, 2026, in *Learning Resources, Inc. v. (faegredrinker.com) Trump* that IEEPA did not authorize the broad tariff regime. That decision did not settle how refunds would be paid, leaving the mechanics to the U.S. Court of International Trade and U.S. Customs and Border Protection. ### Why are companies moving so carefully if the tariffs were ruled unlawful? The main reason is that getting money back can create a second fight over who should keep it. Law firms advising importers say refunds are paid to the importer of record, but that does not prevent suits from customers, distributors or consumers who argue tariff costs were passed through and should now be returned. (businesstimes.com.sg) Faegre Drinker said plaintiffs’ firms have already advertised investigations and that companies face potential claims under consumer-protection, contract and unjust-enrichment theories. Troutman Pepper Locke said some companies also face shareholder and governance questions over how refund opportunities are discussed internally and disclosed externally. (troutman.com) ### How big is the refund pool? The numbers cited by trade lawyers and political reporting are large enough to matter well beyond trade departments. Skadden said the Court of International Trade ordered CBP to refund about $165 billion in unlawfully collected IEEPA duties, while Faegre Drinker and Politico put the total closer to $166 billion. Skadden also said more than 330,000 importers paid the duties across more than 53 million entries. (troutman.com) Bloomberg calculations cited in follow-on coverage and summaries of company disclosures put disclosed S&P 500 tariff payments or expected IEEPA-related refunds at about $7.3 billion so far. That figure captures only companies that have put numbers into public filings or earnings materials. (faegredrinker.com) ### Which companies have put numbers into public filings? Cardinal Health said in its quarterly filing that the Supreme Court ruled the IEEPA tariffs unlawful, but that uncertainty remained over the timing, scope and administrative process for refunds. That language shows some companies are acknowledging the issue without booking aggressive assumptions. (skadden.com) Flowserve disclosed more directly that it had submitted a request for a refund of $35.4 million for IEEPA tariffs paid from February 1, 2025 to February 20, 2026. Politico also reported that companies including Apple, Ethan Allen and Mattel had signed up for the refund portal or discussed refunds in disclosures and earnings materials. (economictimes.indiatimes.com) ### Why does politics matter here? Trump has publicly signaled that he is watching which companies seek refunds. Politico reported that he told CNBC last month that companies that do not apply for refunds should know him “very well” and added, “I’ll remember them.” Politico also reported K Street rumors that companies feared being singled out if they pursued refunds too visibly. (sec.gov) Nat Halvorson, a partner in Baker McKenzie’s international trade practice and a former U.S. trade official, told Politico that companies were asking, “What is it worth to you to go after the money, when it comes with an incalculable risk?” ### What should boards and finance teams watch now? (sec.gov) The immediate issue is not just whether money comes back, but when and on what legal footing. Skadden said CBP has been building a refund system called CAPE, and Faegre Drinker said Phase 1 went live on April 20, 2026, with refunds already being paid for a limited subset of entries. That makes tariff recoveries a disclosure and balance-sheet question as much as a trade question. (politico.com) Companies now have to decide how much to say in SEC filings, whether to recognize any recoveries before cash is received, and how to prepare for customer claims if refunds arrive. The next milestones are further CBP processing through CAPE and any new orders or appeals in the Court of International Trade cases governing the scope and timing of refunds. (troutman.com) (skadden.com)