Supreme Court could force repayment

American importers say if the Supreme Court rules that they should be refunded the money they paid for President Donald Trump’s tariffs, it would be relatively simple, not the “mess” some have claimed.

Importers pointed to U.S. Customs paperwork that clearly detailed the tariffs they paid on goods brought into the United States.

Last Wednesday, during oral arguments in a case that will decide the fate of Trump’s tariffs, most of the Supreme Court justices expressed doubts that the tariffs were legal.

But some justices have raised questions about what would happen if they rule that Trump does not have the authority to unilaterally impose these tariffs.

Judge Amy Coney Barrett said it would be “complicated” to pay back the billions of dollars in tariffs the US has collected since they went into effect earlier this year.

Neal Katyal, an attorney representing a group of small businesses opposing the tariffs, acknowledged that refunding the taxes would be “a very complicated thing.”

But Rick Muscat, CEO of DeerStags, a third-generation, family-owned shoe company, told CNBC: “I beg to differ in the concern that tariff reimbursement is a mess.”

“On every customs entry, we detail specific line items that show the tax/tariff rates we paid,” Muscat said.

Open Customs Entry SummariesImporters identify the specific product code, country of origin and type of tariff paid.

Muscat provided CNBC with a Customs Entry Summary for a recent shipment DeerStags received from China.

A code in this document classified a 6% tariff for a product based on name, use, and material. Muscat said this mandate has been in effect for years.

The second-line fee was 20% for the “fentanyl tariff” Trump imposed on Canada, China and Mexico for failing to stem the flow of opioids into the United States.

The third line showed the 10% “reciprocal” tariff that Trump implemented by invoking the International Emergency Economic Powers Act. Trump became the first president to use IEEPA to unilaterally impose tariffs.

Muscat has paid more than $1 million in tariffs since Trump announced most of his tariffs in early April, on what he calls “liberation day.”

“U.S. customs was able to add these additional line items to the entry summary every time the president changed tariffs,” Muscat said.

“So it should be easy for importers to apply for refunds based on this tariff clause,” he said.

Muscat added: “The IRS has no problem issuing refunds for tax overpayments. This is no different.”

Greenbar Distillery, a small business in Los Angeles that bottles cocktails and liquor, paid more than $50,000 in additional tariffs (or 10% of the company’s profits) under Trump’s trade policy.

“In terms of getting the tariff money back, it should be logistically, technically and theoretically easy because it’s all clearly marked and line item,” said Melkon Khosrovian, co-founder of Greenbar and spirits producer.

“Practically speaking, I don’t know,” Khosrovian said. “This administration has been very creative in finding ways to do the things it likes to do with tariffs.”

He added: “If we could get a single lump sum, that would be great, or a loan for future imports, I would accept that too. But I have very strong reservations that we won’t see even a penny.”

Treasury Secretary Scott Bessent said in a September Supreme Court filing that if the court waits until next summer before issuing a ruling saying the tariffs must be refunded, the refund could be between $750 billion and $1 trillion. “Unraveling these could cause serious disruption,” Bessent told the high court.

The company will begin automating functions in 2026 to eliminate some workers as a way to cut costs to offset the costs of Trump’s additional tariffs.

“The only way we could direct tariffs was through automation,” he said. “Our wholesalers and retailers will not accept price increases. We cannot live on lower margins. We have to do something, and that was automation.”

Both Khosrovian and Muscat signed an agreement along with more than 700 other small U.S. businesses. friendly summary for the Supreme Court We oppose tariffs. Businesses are part of the We Pay the Tariffs scheme coalition.

“There have been over 40 changes to the tariff code this year alone,” said Dan Anthony, managing director of We Pay the Tariffs.

“The unpredictability is crippling and the cost increases are staggering, placing a huge burden on small business owners trying to manage and grow their companies,” Anthony said.

U.S. importers and customs brokers have said that if the Supreme Court rules to roll back the tariffs, it would be difficult to enforce only if the Trump administration does so.

“The Supreme Court determines the legality of tariffs, and if they are not, then the Court of International Trade will decide how to send the money back to U.S. importers,” said Lori Mullins, director of operations at Rogers & Brown Custom Brokers.

If the tariffs are determined to be illegal, issuing refunds should be as easy as when U.S. Customs automatically refunded U.S. importers Generalized System of Preferences duties on eligible U.S. imports between Jan. 1, 2018, and April 21, 2018, Mullins said.

“With GSP, imports were filed a certain way and it was a simple process with Customs sending the money back to the importers,” Mullins said.

He added that since IEEPA tariffs are filed itemized, the refund process would be similar and theoretically faster.

“But our understanding is that if there is a chargeback, it could be a little more complicated,” Mullins said. “Because the federal government says this money is really important to the coffers of the United States, so importers may have to come in and get that money back.”

The only way to do this is for customs brokers to fill out a form, Mullins said. Post Summary Correctionwill only be applied for the repeal of a particular tariff. This document will go to Customs, which will then review and approve it.

The real complexity, he says, lies in how customs brokers, who are already dealing with a shortage of experienced staff, will manage the expected increase in applications.

“They’re just wandering around commercial solution tariffs “New 232 variant additions, such as 301 and 232, will continue to be added every 90 days,” Mullins warned.

The federal government is almost $195 billion Revenue from tariffs between fiscal year 2025 and September 30, 2025. Collection of tariffs continues while the Supreme Court evaluates its decision.

Trade lawyers warn that the volume of paperwork submitted by Customs will increase if the Supreme Court rules that some tariffs are legal and others are not.

If that happens, rolling back the tariffs could become more time-consuming and difficult for U.S. businesses.

“This is going to be a huge paperwork burden for businesses,” said Joyce Adetutu, a partner at law firm Vinson & Elkins.

“Even though the paperwork is on a line item basis, there are thousands of products mixed together in some of these shipments, some were subject to IEEPA and some were not,” Adetutu said.

“It also caused tariff rates to change multiple times,” he said. “It will take some time and an administrative burden to figure all this out.”

Adetutu added, “So I think Customs and Border Patrol will be pushing for at least a significant period of time to be able to refund U.S. importers.”