Companies Sue for Billions in Tariffs Ruled Illegal

A surge of over 2,000 lawsuits has overwhelmed the U.S. Court of International Trade as companies seek upwards of $130 billion in refunds for tariffs previously declared illegal. These tariffs were imposed in 2025 by President Trump, impacting more than 300,000 importers. The Supreme Court's ruling in February 2026 invalidated the tariffs but left the process for obtaining refunds to customs officials and the trade court's eight judges. This marks a significant increase in caseload compared to previous years.

Multinational corporations like FedEx and L'Oreal, alongside numerous smaller businesses, are involved in this litigation. Lawyers for some plaintiffs have proposed their cases serve as test litigation to establish a framework for calculating and issuing refunds, with other cases potentially on hold. However, many smaller importers, who constitute the majority of tariff payers, are wary of the extensive legal fees associated with individual lawsuits.

These smaller businesses are advocating for a simplified, low-cost refund process through Customs and Border Protection, such as an online portal. Trade lawyers note that CBP might require importers to follow existing protest procedures, and refunds for tariffs paid at different times in 2025 could be subject to varying rules. The exact process for these massive refunds remains a critical question.

The trade court has historical precedent for managing large-scale refund litigation, notably after a 1998 Supreme Court decision invalidated an exporter tax. In that instance, the court established a steering committee of lawyers to oversee a test case, setting a precedent for subsequent claims. This approach facilitated the payout of approximately $730 million to around 100,000 claimants. Legal teams for current plaintiffs are urging the court to adopt a similar model, despite the unprecedented scale of the current tariff refund demands, with disputes anticipated given the substantial amount at stake.