Supreme Court could force repayment

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

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

During oral arguments last Wednesday for a case that will decide the fate of Trump’s tariffs, most Supreme Court justices expressed skepticism that the duties were legal.

But some justices raised questions about what would happen if they ruled Trump did not have the power to impose those tariffs unilaterally.

Justice Amy Coney Barrett said repaying the billions of dollars in tariffs the U.S. has collected since they took effect earlier this year would be “messy.”

Neal Katyal, the lawyer representing a group of small businesses challenging the tariffs, conceded that repaying the duties would be “a very complicated thing.”

But Rick Muskat, CEO of DeerStags, a third-generation, family-run shoe company, told CNBC, “I beg to differ with the concern over the repaying of tariffs as being a mess.”

“On every customs entry, we detail specific line items that indicate the duty/tariff rates we are paying,” Muskat.

On Customs Entry Summaries, importers identify the specific product code, country of origin, and type of tariffs being paid.

Muskat provided to CNBC a Customs Entry Summary for a recent shipment that DeerStags received from China. 

One code on that document classified a 6% tariff for an item based on the name, use, and material. This duty has been in place for years, Muskat said.

The second line charge was 20% for a “fentanyl tariff,” which Trump imposed on Canada, China and Mexico for failing to stem the flow of opioids into the U.S.

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

Since Trump announced many of his tariffs in early April, on what he called “liberation day,” Muskat has paid more than $1 million in tariffs.

“U.S. Customs was able to add these additional line items to the entry summary each time the president changed the tariffs,” Muskat said.

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

He added: “The IRS has no problem issuing refunds for overpayment of taxes. This is no different.”

Greenbar Distillery, a small business that bottles cocktails and liqueurs in Los Angeles, has 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, logistically, technically, and theoretically, it should be easy, because they’re all clearly marked and line item,” said Melkon Khosrovian, Greenbar’s co-founder and spirits maker.

“Practically, though, I don’t know,” said Khosrovian. “This administration has been very creative in finding ways to do whatever they like doing with tariffs.”

He added: “If we could get a one lump sum, that would be great, or credits on future imports, I would be fine with that as well. But I have very strong reservations that we’re not going to see a penny.”

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

“Automation was the only way we could navigate the tariffs,” he said. “Our wholesalers and retailers will not accept price increases. We can’t live on lower margins. We have to do something, and that something was automation.”

Both Khosrovian and Muskat, along with more than 700 other small U.S. businesses, signed an amicus brief for the Supreme Court opposing the tariffs. The businesses are a part of the We Pay the Tariffs coalition.

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

“The unpredictability is paralyzing, and the cost hikes are staggering, creating an enormous burden on small business owners trying to run and grow their companies,” said Anthony.

U.S. importers and customs brokers said that if a Supreme Court ruling orders tariffs to be repaid, it would be challenging to execute only if the Trump administration makes it so.

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

If the tariffs are ruled illegal, Mullins said, issuing a refund should be as easy as when U.S. Customs automatically refunded U.S. importers Generalized System of Preference duties on U.S.-eligible imports between Jan. 1, 2018, and April 21, 2018.

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

She added that because IEEPA tariffs are filed with itemization, the refund process would be similar and, in theory, faster.

“But our understanding is if there is a repayment, it may be a little more complicated,” said Mullins. “Because the federal government is saying this money is really important to the coffers for the United States, so it may require that the importers need to go in and claw that money back.”

The only way to do that, Mullins said, is for customs brokers to fill out a Post Summary Correction, which would be filed for only the specific tariff being repealed. That document would go to Customs, which would then review and approve.

In her opinion, the real complexity lies in how customs brokers — who are already dealing with shortages in experienced personnel — will manage the expected increase in filings.

“They are navigating new trade remedy tariffs such as 301 and 232, along with new 232 derivative additions that will continue to be added every 90 days,” Mullins warned.

The federal government has collected nearly $195 billion in revenue from tariffs for fiscal year 2025 through Sept. 30, 2025. The collection of tariffs continues as the Supreme Court weighs its decision.

Trade attorneys caution that the volume of paperwork filed by Customs would increase if the Supreme Court decides whether some of the tariffs are legal and others are not.

If this happens, the clawing back of tariffs could be more time-consuming and difficult for U.S. businesses.

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

“While the paperwork is on a line item basis, some of these shipments have thousands of products that are intermingled, and some were subject to IEEPA, and some were not,” said Adetutu.

“You also had tariff rates changing multiple times,” she said. “It is going to take quite a bit of time untangling all of that, and it will be an administrative burden.”

Adetutu added: “So I do think Customs and Border Patrol is going to push for at least a significant amount of time to be able to refund to U.S. importers.”