Distributors, retailers risk missing out on Trump tariff refunds
Companies not classified as registered importers may not receive refunds
Some distributors demand tariff refunds from importers, threaten to stop business
More than 1,800 importers filed suit for tariff refunds
Non-importers face complex refund process; They may never see refunds
NEW YORK, – Distributors and retailers who lack legal status as importers may miss out on $175 billion in tariff rebates that could follow the U.S. Supreme Court’s landmark decision. The U.S. Supreme Court on Friday struck down sweeping tariffs that President Donald Trump imposed last year under a law intended to be used during national emergencies. The court did not elaborate on refunds from tariffs.
More than 1,800 importers, including major retailer Costco, auto parts maker BorgWarner and tire maker Goodyear, have filed lawsuits seeking tariff refunds since Feb. 1, 2025, according to court documents.
But the International Chamber of Commerce has warned that distributors, retailers and other sub-suppliers who are not classed as registered importers (the legal entity responsible for bringing goods into a country) may not legally be able to claim any refunds.
“I think it’s going to take a lot of good will for businesses to find a way out of this, otherwise you’re probably going to end up with quite a bit of litigation between companies,” ICC deputy secretary-general Andrew Wilson told Reuters on Friday.
DISTRIBUTORS SENT WARNING LETTERS TO IMPORTERS
Wary of such risks, these companies are warning importers in writing that they may stop doing business with them if they do not receive compensation for sharing Trump’s tariff burden, according to Vadam Law trade attorney Vinicius Adam, who has filed five lawsuits on behalf of importers seeking refunds paid under the International Emergency Economic Powers Act.
“We are sending legal documents in the hope that some importers will sign it,” the man said.
He said some of these companies claim their contracts entitle them to money. Others argue that importers should not be allowed to hide refunds because they rely on distributors to pay tariffs. Others say it’s not fair for importers to keep all the money for themselves.
The recovery of funds will in each case depend on the companies’ contractual arrangements.
So far, none of the organizations that are not registered importers have filed a lawsuit, Adam said. Reuters could not independently verify this claim. For companies seeking a share of the refund, threatening to stop business with importers would be more effective than filing a lawsuit, Adam said.
Amrita Bhasin, CEO of logistics company Sotira, which works with retailers and consumer products companies on overstock, said the company likely won’t take independent legal action despite raising prices throughout the year due to tariffs.
“It’s not just the financial inconvenience, it’s the inconvenience of everything else,” Bhasin said, noting that as a small startup, messaging, compliance and customer communication “will cost a lot of money, energy and time, in addition to the stress.”
This article was generated from an automated news agency feed without modifications to the text.
