Trump Tariff Class Action: What Businesses Need to Know
The US Supreme Court has issued a stern rebuke of Trump’s use of the IEEPA, bringing legal uncertainty while simultaneously upholding Congress's fiscal authority. Experts from the Brookings Institution note that this ruling could have broader implications for Trump’s other policies.
Lawsuits Filed Against Trump Tariffs
Multiple organizations have filed class action lawsuits on behalf of businesses affected by the tariffs. The New Civil Liberties Alliance (NCLA) represents importers, including Smirk & Dagger Games, which paid tariffs on imported products. NCLA Chairman Mark Chenoweth stated that the organization is prepared to ensure that everyone receives relief as soon as possible.
An alliance of over 20 state attorneys general has also filed a lawsuit against the tariffs implemented under Section 122, calling it an illegal tax on Americans. New York Attorney General Letitia James stated that this violates the principle of separation of powers, while Arizona Attorney General Kris Mayes pointed out that the Supreme Court has ruled that Trump lacks unilateral authority.
Supreme Court Ruling: Tariffs Deemed Illegal
In February 2026, the Supreme Court ruled that these tariffs were deemed illegal under the IEEPA, asserting that the president cannot impose tariffs using emergency powers without congressional approval. Experts from the Peterson Institute for International Economics praised the ruling, stating that it negates the legitimacy of the IEEPA as a tariff law, aligning with the non-delegation principle.
Brookings experts noted that this ruling comprehensively rejects the overreach of executive power in trade policy, emphasizing Congress's exclusive authority over tariffs under Article I, Section 8. Heather Herbert from Chatham House called it a complete repudiation, although she warned that Trump still retains other tariff options, and the ruling does not address the issue of refunds.
Legal Avenues for Businesses Seeking Refunds and Injunctions
Businesses affected by the tariffs may have several legal options to seek relief. The ongoing class action aims to secure refunds for businesses that paid tariffs under the now-overturned policy. These cases argue that since the Supreme Court has ruled these tariffs illegal, businesses should not bear the financial burden of complying with this unconstitutional order.
Organizations leading these efforts include the NCLA and the Institute for Justice, both of which have announced acceptance of plaintiffs. Small businesses like V.O.S. Selections and FishUSA have joined as plaintiffs to test the legal theory of compensation owed to businesses harmed by the illegal tariffs.
The coalition of state attorneys general is focusing on the Section 122 tariffs implemented after the ruling, arguing that these also constitute an illegal tax on Americans. This parallel avenue of recourse aims to prevent future tariff implementations that bypass congressional authority.
Experts note that the implementation of refunds remains complex, as this ruling adds layers of legal complications.