The process of refunding tariffs to importers is moving forward following the Supreme Court’s ruling that the tariffs were unauthorized under IEEPA. At the same time, a new front is opening: customers of importers have begun bringing claims against importers that passed those tariff costs through to purchasers but have retained the resulting refunds.
These claims have initially been brought as class actions on behalf of retail consumers like Lululemon and FedEx. But the case may be more compelling for B2B customers that purchased raw materials, components, sub-assemblies, finished goods, or capital equipment from distributor-importers. Companies should be particularly alert to these opportunities if they purchase in procurement markets that are characterized by reliance on distributors or wholesalers who are the importers of record – such as specialty chemicals, electronic components, scientific supplies, plastic and resins, fertilizer, power transmission and hydraulics, and food and pharma ingredients.
Why This May Apply to You
If your company paid tariff surcharges, tariff-driven price increases, or line-itemed tariff charges to a supplier acting as importer of record, you may have a claim to a share of any tariff refund that supplier ultimately receives. The strength of that claim will depend on the specific contracts, invoices, surcharge language, course of dealing, and pricing history between you and your supplier. Commercial purchasers, particularly those with documented tariff pass-through, are often better positioned than ordinary consumers to pursue recoveries.
Practical Next Steps
1. Identify affected purchases. Have procurement or finance teams flag purchases that included IEEPA tariff charges, tariff surcharges, or tariff-related price increases.
2. Check for existing dialogue. Determine whether business discussions about refund-sharing with the supplier are already underway.
3. Evaluate strategy. If the potential recovery is material and a business resolution seems unlikely, assess whether a demand letter, negotiated resolution, or litigation is the right path forward.
Background
For more on how the federal refund process and pass-through litigation landscape are developing, see our prior advisory: Tariff Refunds and Pass-through Litigation: Where We Are Now and What Comes Next.
We’re Here to Help
If your company purchased goods from a distributor-importer and may have borne the cost of IEEPA tariffs, we would be glad to discuss your options and to help assess next steps.
