1,000 companies "besiege" the White House: demand the return of $100 billion in tariffs, the Supreme Court may decide life or death this week

Wallstreetcn
2026.01.08 12:20
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As the U.S. Supreme Court is expected to rule on Trump's tariff policy this Friday, over 1,000 companies have filed lawsuits seeking to overturn the current tariff policy and refund the substantial taxes already paid. The wave of lawsuits erupted after a hearing in November last year, with the total number of legal entities involved exceeding 1,000. If the government loses, it will trigger a complex refund game. Although the Supreme Court has not confirmed whether it will issue an opinion this week, this ruling will affect the legal boundaries of future U.S. trade policy

As the U.S. Supreme Court is expected to make a final ruling on President Trump's controversial tariff policy as early as this Friday, an unprecedented legal "onslaught" is unfolding in Washington. Over 1,000 companies have officially filed lawsuits in an attempt to overturn the current tariff policy and seek refunds for the substantial taxes paid over the past few months.

According to Bloomberg, this wave of lawsuits erupted after the Supreme Court expressed skepticism about Trump's trade policy during a hearing on November 5 last year. As the decision day approaches, hundreds of companies, including globally renowned retailers and manufacturers, are no longer sitting on the sidelines and have joined the lawsuits, bringing the total number of involved legal entities to over 1,000. If the government loses, it will trigger a complex negotiation on how to refund the collected taxes.

According to the latest official report, as of December 14 last year, the total amount of tariffs collected by the U.S. government under the Emergency Powers Act has reached approximately $133 billion. Trump previously warned that if forced to refund these tariffs, it would be a "national security disaster." He reiterated in a speech to House Republicans on Tuesday that the president must have the ability to negotiate through tariffs and hopes the Supreme Court will do the "right thing."

Although the Supreme Court has not confirmed whether it will include the tariff case in the opinion to be released this Friday, for thousands of importers, this ruling is not only about billions of dollars in cash flow but will also determine the legal boundaries of future U.S. trade policy. Even if the Supreme Court declares the tariffs illegal, the specific refund process may still be handled by lower courts, meaning that filing lawsuits has become a necessary means for companies to recover losses.

Outburst of Lawsuits: From Watching to "Rushing In"

Court records show that as of January 6, at least 914 lawsuits have been filed, with the vast majority submitted after the hearing in November last year. Since some lawsuits involve multiple independently taxed subsidiaries, the actual number of participating companies is even larger.

John Vecchione, senior litigation counsel at the New Civil Liberties Alliance, pointed out that companies are "rushing in" to join the lawsuit army. Previously, many companies chose to watch from the sidelines for fear of political retaliation or incurring the government's "wrath." Trade lawyer Erik Smithweiss stated that as the end of the year approached and the Supreme Court's direction changed, the pressure on companies shifted to a necessity to take all means to ensure eligibility for refunds, leading to a surge in lawsuits.

Publicly traded companies, including Costco, EssilorLuxottica SA, and Goodyear Tire & Rubber Co., have joined the ranks seeking refunds. In just the first few days of 2026, dozens of entities, including Dole Fresh Fruit Co., e.l.f. Cosmetics, and J. Crew Group LLC, have filed lawsuits

Cross-Industry Alliance: Consumer Giants and Industrial Titans Stand Together

An analysis by Bloomberg of the 327 plaintiff companies that filed lawsuits by mid-December shows that the opposition to Trump's tariff policy spans a wide range of industries. From sports brands like Reebok and Puma to beauty and personal care giants like Revlon and Conair, as well as food companies like Bumble Bee and Del Monte Fresh Produce, well-known consumer brands are almost all involved.

In addition to the consumer goods sector, industrial and manufacturing giants are also deeply entangled. The plaintiff list includes subsidiaries of American aluminum giant Alcoa Corp., as well as subsidiaries of overseas companies like Japanese auto parts seller Yokohama Rubber Co., Kawasaki Heavy Industries, and Chinese photovoltaic company LONGi Green Energy Technology Co., Ltd. This indicates that Trump's tariff policy has had a widespread impact on global supply chains.

Data shows that apparel and textiles, the automotive industry, and industrial electrical equipment manufacturers dominate the plaintiffs. Although most of the suing companies are headquartered in the United States, about a quarter of them have overseas parent companies, highlighting the global impact of this Supreme Court ruling.

The Road to Refunds: A Complex Legal Battle

The core of this legal battle is whether Trump overstepped his authority by using the 1977 International Emergency Economic Powers Act (IEEPA) to impose global tariffs. Although lower courts ruled last year that these tariffs were illegal, they allowed the government to continue enforcing them during the litigation. If the Supreme Court, which has shown skepticism during hearings, ultimately upholds the lower court's ruling, the U.S. International Trade Court will become the main venue for handling the refund process.

The U.S. government has previously assured the trade court that it will not use customs' "liquidation" procedures to obstruct the court's order to recalculate tariffs and pay refunds. However, the Trump administration has also signaled that if the Supreme Court prevents it from using the emergency powers act, the government may resort to other legal bases, including national security provisions, to reimpose tariffs, although this approach is more cumbersome and could trigger a new round of legal challenges.

The Real Cost to Businesses

For many companies, litigation is not just a legal strategy but a matter of survival. Hans Heim, CEO of Ibis Cycles, stated in an interview, "You almost have to sue to get your voice heard." This high-end bicycle manufacturer paid $800,000 in tariffs in 2025.

Another plaintiff, Marvina Robinson, founder of B. Stuyvesant Champagne LLC, filed a lawsuit in November to recover the $78,000 in tariffs paid in 2025. This unexpected expense forced her to reduce hiring during the holiday season and necessitated a price increase of $2 to $7 per bottle of champagne Current legal precedents show that large-scale tax refunds are not impossible. In 1998, the Supreme Court ruled that the harbor maintenance tax was unconstitutional, which subsequently triggered a refund process involving approximately 4,000 cases and a total amount of $750 million. Now, as the amounts involved soar to the trillion level, customs brokers and lawyers are advising businesses to organize their import records in preparation for potential refund procedures.

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