Businesses, including some in the Chicago area, are pressing for refunds after a federal court ruled Wednesday that companies should be repaid for certain tariffs they’ve paid.
The U.S. Court of International Trade ruled this week that “all importers of record’’ were “entitled to benefit’’ from last month’s Supreme Court ruling that struck down tariffs President Donald Trump imposed last year under the International Emergency Economic Powers Act.
The trade court “confirmed that businesses are entitled to full refunds of unlawfully collected IEEPA tariffs,” Rick Woldenberg, CEO of Learning Resources and hand2mind, said in a statement. The family-owned Vernon Hills toymakers brought one of the cases that the Supreme Court ruled on.
The trade court’s ruling “should now allow the refund process to move forward in an orderly and efficient manner,” he said.
But how tariffs could be refunded remains unclear. Illinois importers paid $11 billion in tariffs from March 2025 to December, according to We Pay the Tariffs, a national coalition of more than 1,000 small businesses. Of that, $6.7 billion were tariffs under the International Emergency Economic Powers Act.
“The government has records of every tariff payment. Refunds must be automatic, meaning that they are issued directly to importers of record without requiring individual applications,” a We Pay the Tariffs letter signed by small businesses said.
Coalition member Amanda Kezios, owner of Mojo Spa in Wicker Park, said some businesses like hers don’t import goods or raw materials directly but buy through wholesalers and distributors that pay tariffs.
“We’ve had to absorb the higher prices as they moved through the supply chain. Even if refunds are issued to direct importers, there is no mechanism to ensure those savings will be passed on to the small businesses that ultimately paid the increased costs,” Kezios said.
She said there should be a dedicated office to manage tariff reimbursements, similar to how tax refunds are processed.
“Without a clear system in place, these refunds could take several months to reach businesses,” she said. “Small businesses simply cannot wait that long given the rising costs and uncertainty we are already facing.”
Sari Wiaz, owner of Baby Paper in Northbrook, said the trade court’s ruling is “encouraging in that it directs Customs and Border Protection to process refunds broadly, without requiring every individual business to file its own lawsuit.” She is part of a national campaign called Small Businesses Against Tariffs.
Wiaz is “cautiously optimistic,” but also concerned about refund delays. “As a small business, we don’t have the resources to pursue litigation on our own, so we’re watching closely and hoping the process is as straightforward as the court intends,” she said.
Yet refunds wouldn’t be a silver bullet for businesses like hers that face many challenges. “I am still very low, or out of stock, on many products as I was mindful about how much tariff cost I could absorb at a time,” Wiaz said. “If I do not have stock, I cannot generate revenue.”
Atlanta-based business and tax advisory firm Aprio cautioned against filing claims for tariff refunds prematurely.
“Early filings may lead to denials and could invite unnecessary scrutiny,” Jay Cho, Aprio’s managing director of tariffs and customs, said in a statement.
Instead, “businesses should gather important data, organize documentation and ensure their compliance records are in order so they’re ready when a formal process is announced,” he said. Refund claims might also trigger customs audits.
The trade court’s ruling “does not mean tariffs are going away,” Cho said. “Additional tariffs under other authorities remain a real possibility.”
On Thursday, more than 20 states, including Illinois, filed a lawsuit over 15% tariffs Trump imposed after the Supreme Court’s ruling.
The Democratic attorneys general leading the suit argue that Trump is overstepping his power with the planned tariffs. He imposed duties under Section 122 of the Trade Act of 1974, which has never been invoked.
“I am proud to join my colleagues in yet another fight to prevent hardworking Americans from footing the bill for the Trump administration’s unlawful tariffs,” Illinois Attorney General Kwame Raoul said in a news release.
Trump’s first round of tariffs threatened Illinois’ economy and harmed taxpayers by increasing costs to the state and local governments, Raoul’s office said.
“For example, the Illinois Department of Transportation alone estimated that over two years, the state’s costs for transportation projects would have been $249 million to $585 million higher due to tariffs,” according to a news release.
Contributing: AP