Overview
- The Supreme Court could decide as early as Jan. 9 on the legality of tariffs imposed under the International Emergency Economic Powers Act, including reciprocal measures and fentanyl-related duties on China, Canada, and Mexico.
- Provisional tariff collections totaled about $133 billion as of Dec. 14, creating potential refund exposure reported at more than ¥20 trillion if the measures are struck down.
- Importers have filed more than 900 lawsuits tied to the tariffs, with over 1,000 companies involved, including Japanese firms such as Toyota Tsusho and Sumitomo Chemical.
- Under U.S. procedures, duties are paid provisionally and U.S. Customs and Border Protection must finalize amounts within 314 days, and many firms sued before finalization because repayment remains uncertain even after a possible illegality finding.
- The U.S. Court of International Trade in December rejected a bid to pause CBP’s finalization process, and Treasury Secretary Besant warned that losing the cases would undercut the president’s ability to use tariffs as a negotiating tool.