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Litigating Tariff Refund Pass-On Class Actions: Lessons from Antitrust

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Published by Bloomberg INDG, Bloomberg Law, March 25, 2026

March 25, 2026 • 1-minute read

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Downstream purchasers—distributors, retailers, or end consumers—are now asking if they can claim a share of about $170 billion in potential refunds after the US Supreme Court’s landmark decision invalidating tariffs imposed under the International Emergency Economic Powers Act.

The Supreme Court held Feb. 20 that the statute doesn’t authorize tariffs—a revenue-raising measure historically within the province of Congress under the Import Clause and the Taxing and Spending Clause.

The decision had immediate practical consequences. US Customs and Border Protection had collected billions of dollars in tariffs before the ruling, yet the Supreme Court didn’t prescribe a specific remedy or direct refunds of tariffs already paid. Importers of record moved swiftly to recover, pursuing administrative relief from CBP and filing suit in the US Court of International Trade.

So can downstream purchasers share in those refunds on the theory that the importer of record passed on some or all of the tariff costs through higher prices? Drawing on decades of antitrust jurisprudence—principally the Supreme Court’s decisions in Hanover Shoe, Inc. v. United Shoe Machinery Corp and Illinois Brick Co. v. Illinois—we explain why importers of record should retain any tariff refunds and why downstream parties face formidable legal and practical barriers to recovery.

Read the full Bloomberg Law article here.

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.

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