WASHINGTON — Arizona coffee roaster Gabe Hagen questions if he’ll recover the significant costs incurred from tariffs on imported coffee beans from South America, Africa, and the Indo-Pacific regions. Despite the U.S. Supreme Court’s ruling against President Trump’s tariffs, many small business owners remain uncertain about potential refunds. “I’m in the process of consolidating all of my invoices because I need the money back — if they’re going to give it back,” Hagen explained.
Post-tariff, coffee pallet costs soared from $5,000-$7,000 to $8,000-$11,000, creating financial strain for businesses like Hagen’s. The government’s plan to refund the $166 billion collected under Trump’s 1970s emergency economic powers is gradually unfolding through court documents. Nearly 2,000 companies have filed lawsuits seeking tariff refunds in the U.S. Court of International Trade, with many acting even before the Supreme Court’s decision.
U.S. Customs and Border Protection’s refund process is 40% to 80% complete, as detailed in a court-mandated update from March 12. However, the Supreme Court left the refund process to the lower courts following their ruling against Trump’s use of the International Emergency Economic Powers Act (IEEPA).
Justices leave it to the lower courts
President Trump used IEEPA to impose high tariffs, citing emergencies ranging from trade imbalances to political disputes. These tariffs reached up to 50% on Brazilian and Indian goods and peaked at 145% on Chinese imports during trade tensions. Although some tariffs settled around 50% post-negotiations, importers like Busy Baby, a Minnesota baby product company, faced severe impacts. Owner Beth Benike is suing for tariff refunds, arguing that financial constraints stifled business growth.
Benike’s attorney, Matthew Platkin, emphasized the substantial financial losses, “even for a small business, it’s tens of thousands of dollars at a minimum.” Federal Judge Richard Eaton ordered customs officials to halt illegal tariff collections and recalculate duties in a case involving Atmus Filtration from Tennessee.
‘Survived, but barely’
As the government grapples with refund logistics, interest on the owed refunds accumulates, potentially adding $700 million monthly, according to trade policy expert Alfredo Carrillo Obregon. Many businesses, from small enterprises to giants like Costco, await refunds. Barton O’Brien of a dog apparel company, which absorbed tariff costs, expressed skepticism about timely refunds, preferring large corporations to lead the legal battle.
Shawn Phetteplace of Main Street Alliance insists the administration should return funds and cease pursuing new tariffs. Following the Supreme Court’s decision, several Democratic-led states, including Oregon and Arizona, have filed lawsuits against the new tariffs announced by Trump. Small businesses and states played a critical role in overturning Trump’s IEEPA tariffs.
