Some importers have already begun taking steps to seek refunds of tariffs paid to bring imports into the U.S. in the event the tariffs are ruled to have been illegal, which appears to be a possible outcome of the cases currently in deliberations at the U.S. Supreme Court (see “Justices Skeptical“).
Suits to recover tariffs paid have been filed in federal trade court by Costco, Revlon Consumer Products, Kawasaki, Bumble Bee Foods, and automotive supplier Valeo North America, according to The New York Times. Other companies, especially smaller ones, have filed appeals with Customs and Boarder Protection, or sold their rights to future refunds to hedge and distressed-debt funds, according to the report, which said that such rights are trading at 30 cents or less on the dollar.
It’s unknown how the court will rule on the legality of the tariffs, and whether or how it will order them to be repaid if they are ruled to have been illegal. The impact on affected businesses, such as game, publishing, and merch companies, could be huge; the total amount collected to date is around $200 billion.
Source: ICv2
