Major U.S. trade associations are pressing the Trump administration to expedite refunds of billions in duties collected under tariffs now deemed illegal by the Supreme Court, with a particular focus on protecting small businesses from prolonged financial strain.
On Wednesday, the Consumer Technology Association (CTA) and the U.S. Chamber of Commerce jointly filed an amicus brief in the ongoing case V.O.S. Selections, Inc. v. Trump — a lawsuit brought by small importers seeking repayment of duties paid on goods subject to President Donald Trump’s sweeping tariffs.
The brief argues that an “efficient, orderly process” for issuing refunds is essential for the administration, the courts, and American businesses alike.
Neil Bradley, the Chamber’s executive vice president and chief policy officer, stated in the release: “On behalf of the hundreds of thousands of businesses, especially small businesses, that are now owed refunds, the Chamber and CTA are asking the court to establish an efficient, orderly process to deliver refunds en masse.”
He expressed concern that delays or inefficiencies could allow trial lawyers to profit at the expense of legitimate claimants.
“The last thing our system needs is for the trial bar to be profiting off refunds owed to small businesses,” he added.
Ed Brzytwa, CTA’s vice president of international affairs, underscored the stakes for smaller firms.
“While this matters for every American company, refunds are existential for the many smaller businesses and startups who shouldered the tariff burden,” he said.
The filing follows the Supreme Court’s 6-3 decision in late February 2026, which ruled that Trump’s invocation of the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs exceeded congressional authority. Chief Justice John Roberts, writing for the majority, held that IEEPA does not grant the president unilateral power to levy import taxes absent a specific, imminent foreign threat.
The ruling invalidated duties ranging from 10% to 50% collected since February 2025, with Penn-Wharton Budget Model estimates placing the total revenue at risk of refund at $175–$179 billion. On Wednesday, Judge Richard K. Eaton of the U.S. Court of International Trade reinforced the Supreme Court’s decision, ruling that businesses subjected to the now-illegal tariffs are “entitled to the benefit” of the high court’s judgment.
Eaton’s order paves the way for refund proceedings, though the exact mechanism — including timelines, interest calculations, and administrative handling — remains unresolved.
Major corporations have already filed lawsuits seeking billions in refunds. Costco Wholesale, Toyota Motor Corp., BYD Co., FedEx Corp., and others have initiated legal action against the administration, claiming overpayments since the tariffs were imposed in April 2025. Small businesses, however, lack the resources for protracted litigation, making the trade groups’ push for a streamlined, mass-refund process particularly urgent.
The Chamber and CTA emphasized that small and medium-sized enterprises (SMEs) often paid the tariffs directly or absorbed them through higher input costs, with limited ability to pass increases to consumers. Delays in refunds could exacerbate cash-flow pressures, especially for startups and importers operating on thin margins.
The administration has signaled it will comply with court directives on refunds. Treasury Secretary Scott Bessent stated Sunday on CNN that the Treasury would “follow what they decide,” though he noted the process “can take weeks or months.” The Treasury has maintained large cash balances ($850 billion projected at end-March 2026, $900 billion at end-June), providing fiscal room to handle repayments.
CBP halted IEEPA tariff collections at 12:01 a.m. EST on Tuesday, February 24 — three days after the Supreme Court ruling — and deactivated related tariff codes. No formal guidance on refund procedures has been issued, though CBP stated it would provide updates via Cargo Systems Messaging Service (CSMS) messages.
The broader trade landscape remains turbulent. Trump imposed a temporary 15% global tariff under Section 122 of the 1974 Trade Act (maximum allowable for 150 days without congressional approval) immediately after the ruling, replacing the invalidated IEEPA duties. USTR Jamieson Greer has launched new Section 301 investigations targeting pharmaceuticals, industrial overcapacity, forced labor, digital services taxes, and discrimination against U.S. tech/digital goods, signaling a shift to more targeted, legally durable tools.
Republican congressional leaders, including House Speaker Mike Johnson, have deferred refund questions to the White House, with Johnson stating: “The White House is going to sort that out… This is an unprecedented event, of course, so there’s no playbook to follow.”
Senate Democrats’ legislation — introduced by 22 senators, including Chuck Schumer and Ron Wyden — seeks full refunds with interest within 180 days, prioritizing small businesses, but faces uncertain prospects in the Republican-controlled Senate.
For importers, especially SMEs, the ruling offers relief from duties deemed unlawful, but administrative delays and potential new tariffs under alternative authorities create uncertainty. The trade groups’ filing reflects a broader push to ensure refunds reach those most impacted quickly and efficiently, avoiding prolonged litigation that could disproportionately burden smaller players.
