The Supreme Court recently invalidated President Donald Trump’s signature “Liberation Day” tariffs as unlawful, triggering a massive $100 billion refund to U.S. companies that paid the duties.
Despite claims by President Trump that tariffs made America rich, Treasury records show that by July 31, Customs and Border Protection had certified approximately $128.68 billion in potential refunds under the International Emergency Economic Powers Act (IEEPA), with about $49.2 billion issued in June alone.
The evidence indicates that Americans absorbed most of the tariff burden. A Federal Reserve Bank of New York study found nearly 90 percent of the economic cost fell on U.S. firms and consumers, while the Congressional Budget Office estimates that foreign exporters absorb only about 5 percent of tariff costs — with roughly 70 percent passing directly to consumers through higher prices.
The reversal has created a dilemma for consumers: they were the ones who paid higher prices but have no direct mechanism to recover the cost from the government. Companies like Nike, Costco, Amazon, IKEA, FedEx, and Ray-Ban parent EssilorLuxottica are now facing class-action lawsuits from customers who argue they can be reimbursed twice — once through higher prices and then via refunds.
The Supreme Court’s ruling in Learning Resources v. Trump on February 20 set the refunds in motion by striking down the tariffs under the IEEPA. However, the administration has quickly moved to impose new duties under other trade laws, including a 10 percent and 12.5 percent tariff on imports from 60 trading partners.
Major companies are reaping substantial benefits: Walmart’s refund could reach $2.4 billion, Apple’s is roughly $2.2 billion, Ford’s is about $1.3 billion, Nintendo has $936 million, and Amazon reported $600 million. American Eagle disclosed that it sold rights to $68.9 million in tariff refunds for just $18.6 million.