Amazon faces consumer lawsuit over tariffs

Amazon.com was sued in federal court in Seattle on May 15 by consumers who say the company kept tariff-related costs embedded in product prices after the U.S. Supreme Court invalidated the underlying import taxes. The proposed class action says Amazon raised prices on imported goods while the tariffs were in effect and then failed to return the money after importers became eligible to seek refunds from the government. Amazon did not respond to a Reuters request for comment, according to Reuters’ May 15 report. The case lands as a separate U.S. trade action is set to hit Canadian mushroom exports on May 18, adding a new round of duty-related costs for importers and suppliers. ### What are Amazon customers alleging in the Seattle case? The May 15 complaint alleges Amazon collected “hundreds of millions of dollars” in unlawful tariff costs by raising prices on imported goods before the Supreme Court ruled the tariffs were unauthorized. Reuters reported that the suit asserts unjust enrichment and a violation of Washington state consumer-protection law. (money.usnews.com) Consumers in the case say they cannot seek refunds directly from the U.S. government because they were not the importers of record. Reuters reported that thousands of companies have begun seeking billions of dollars in refunds after the ruling, while the lawsuit says Amazon has not done so. ### Which tariffs did the Supreme Court strike down? (money.usnews.com) On February 20, 2026, the Supreme Court held 6-3 that the International Emergency Economic Powers Act does not authorize a president to impose tariffs, according to legal summaries of the ruling. Ropes & Gray said the decision in *Learning Resources, Inc. v. Trump* and *Trump v. V.O.S. Selections, Inc.* invalidated both the “Reciprocal Tariffs” first imposed in April 2025 and the “Trafficking and Immigration Tariffs” tied to fentanyl. (money.usnews.com) Reuters reported that the Amazon complaint says President Donald Trump had overstepped his authority by using IEEPA to impose the tariffs at issue. The lawsuit also points to an April 2025 dispute in which the White House objected to a report that Amazon was considering showing tariff costs on product listings, Reuters said. (ropesgray.com) ### Why does the refund fight fall on retailers instead of the government? Reuters reported that consumers are not eligible to recover tariff payments from the government because the tariffs were paid by importing companies, not by retail shoppers. That leaves customers arguing that any money recovered by importers or platforms should be passed through if the original price increases were justified as tariff costs. (money.usnews.com) The Seattle suit is not the first of its kind. Reuters said earlier consumer cases have targeted companies including Costco, Nike and FedEx over allegations they did not pass tariff refunds back to customers. ### What is happening with Canadian mushrooms next week? The U.S. Commerce Department’s preliminary countervailing-duty determination on fresh mushrooms from Canada is scheduled for publication in the Federal Register on May 18, 2026. (money.usnews.com) The notice says U.S. authorities reached a preliminary affirmative determination in the subsidy case and aligned the final countervailing-duty determination with the final antidumping determination. CBC reported that a Commerce Department fact sheet shared with the Canadian Mushroom Growers’ Association said the preliminary duties would range from 1.6% to 5%. Ryan Koeslag, executive vice-president of the Canadian Mushroom Growers’ Association, told CBC that using agricultural tax exemptions as the basis for countervailing duties was “unprecedented.” (federalregister.gov) ### Why are Canadian growers focused on tax exemptions and CUSMA? The U.S. investigation began after U.S. growers argued that several tax exemptions in Canada unfairly subsidized Canadian mushroom producers, CBC reported. Koeslag told CBC that comparable agricultural tax exemptions exist in the United States and warned the approach could expose farm products on both sides of the border to more trade cases. (cbc.ca) CBC also reported that the Canada-U.S.-Mexico Agreement review is approaching on July 1. That gives growers and importers a second date to watch as the mushroom case moves through the U.S. trade process. ### What comes next in both disputes? The Seattle lawsuit will proceed in federal court unless Amazon moves to dismiss or the parties reach a settlement, according to the Reuters account of the filing. (cbc.ca) In the mushroom case, the preliminary countervailing duties are set to take effect with the May 18 Federal Register publication, while a separate antidumping track is still moving through the Commerce Department process. A July 1 review point for CUSMA and later final trade determinations will set the next milestones for Canadian growers, U.S. importers and the agencies handling the case. (money.usnews.com)