Michigan businesses face uncertainty on tariff refunds
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Now that the U.S. Supreme Court declared a large swath of President Trump's tariffs illegal, the question is whether businesses — or everyday Americans — will get refunds.
Why it matters: Trade Partnership Worldwide estimates $126 billion is at stake.
- Those tariffs likely made goods of all kinds more expensive as businesses passed higher costs onto everyday Americans. Friday's SCOTUS ruling could lead to a chaotic refund process — and it's unclear who gets to pocket that cash.
State of play: In its ruling, the Supreme Court left that question to the Trump administration. "The Court says nothing today about whether, and if so how, the government should go about returning the billions of dollars that it has collected from importers," Justice Brett Kavanaugh wrote in his dissent.
- TD Securities economists view the refund process as "unclear" and estimate it could take up to 18 months as cases make their way through the federal court system.
- Trump said Saturday he would hike global tariffs to 15% — the highest limit allowed under a separate trade law.
Zoom in: Trade Partnership Worldwide estimates Michigan businesses paid $3.8 billion in tariffs from February to December 2025 under the International Emergency Economic Powers Act.
- The high court rejected tariffs imposed under IEEPA.
By the numbers: Michigan imported about $167 billion worth of goods last year, the fifth-highest in the nation, with autos accounting for more than half, the Detroit News reported.
Between the lines: The court's ruling does not affect existing auto, steel and aluminum tariffs imposed under other laws, per the News.
What they're saying: Michigan members of Congress split along party lines after the ruling.
- U.S. Rep. Debbie Dingell (D-Ann Arbor) called the tariffs a "hidden tax on working families" in a statement, saying they squeezed small businesses and created uncertainty across manufacturing supply chains.
- Rep. Tom Barrett (R-Charlotte) said in a statement the ruling doesn't change Trump's goal of correcting longstanding trade imbalances that hurt Michigan workers, but it does reaffirm Congress' role in restoring U.S. manufacturing and lowering living costs.
Refund reality: Butzel Long trade attorney Jennifer Smith-Veluz, who represents auto suppliers, told the News that companies seeking tariff refunds will likely have to file a lawsuit with the U.S. Court of International Trade.
- "Refunds are not going to be forthcoming," she said, adding that recovery efforts will likely need to be litigated based on Trump's indications.