Supreme Court ruling sparks tariff refund wave as large companies sue for $165 billion. Small business owner Alexandra Fine of Dame Products refunds custom
Supreme Court Ruling Sparks Tariff Refund Wave
### Companies Sue for Reimbursement Amid Legal Victory
As the U.S. Supreme Court declared that President Donald Trump's tariffs under the International Emergency Economic Powers Act (IEEPA) were illegal, several large corporations are now suing the administration to obtain tariff refunds totaling up to $165 billion, according to the Penn Wharton Budget Model. The ruling has opened a new front in the ongoing trade dispute, with major companies like Bausch & Lomb, Dyson, FedEx, and L'Oreal among those taking legal action.
### Small Business Steps Up: Dame Products' Unilateral Refund
In contrast to the large corporations seeking refunds, Alexandra Fine, CEO of Dame Products—a sexual health and wellness company—has taken a different approach. After implementing a $5 "Trump tariff surcharge" on customer purchases in 2025, she has decided to reimburse customers for these costs. According to Fine, who co-founded Dame in 2014, the company will automatically refund tariffs stemming from IEEPA that consumers had to pay.
### Tariffs' Impact on Consumers and Businesses
Consumers have often been the primary bearers of tariff costs, as a recent study by the Federal Reserve Bank of New York revealed. While nearly 90% of U.S. tariffs were passed along in the form of higher prices last year, other analyses found slightly lower "pass-through" rates to shoppers. Despite the administration's claims that foreign governments and exporters absorb most tariff costs, businesses like Dame have had to shoulder significant financial burdens.
### Tariff Payments and Reimbursements
Dame paid approximately $100,000 in tariffs last year, with about $70,000 stemming from IEEPA duties. The company has already processed some customer refunds and anticipates delivering rebates on thousands of additional product orders within a few weeks. Fine expressed hope that other businesses would follow Dame's lead by returning the money to consumers who were legally overcharged.
### Legal Landscape for Refunds
The Supreme Court’s ruling did not address the issue of how businesses could seek reimbursement, leaving open questions about the process and timeline. Companies like FedEx have stated they will only be able to issue refunds if they first receive their own tariff refunds from the federal government. Law firms are already filing class-action lawsuits on behalf of consumers who overpaid for imported goods.
### Conclusion: A Mixed Response
While some small businesses like Dame Products choose to refund customers directly, larger corporations and individual consumers are taking legal action to reclaim tariffs paid. The outcome remains uncertain as businesses await further guidance from the government and courts. The situation underscores the complex and ongoing nature of U.S. trade policy in the wake of the Supreme Court's ruling.
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