On Friday, February 20th, the Supreme Court ruled against the sweeping Trump tariffs better know as the Liberation Day tariffs. In the six to three decision, the Court ruled that the President inappropriately used the International Emergency Economic Powers Act (IEEPA) in order to enact the tariffs, and thus congressional approval would be required for such tariffs.
In their ruling, the Supreme Court left open the door for refunds for those tariffs paid by US companies. Though they gave no resolution or any administrative mechanisms for it, one of the dissenting judges, Brett Kavanaugh, argued that the US “may be required to refund billions of dollars to importers who paid the IEEPA tariffs” and that the whole process would be a “mess”.
So what does this mean for the American coffee industry? Only a tiny fraction of the coffee consumed in the United States is grown domestically, and our largest coffee trading partner, Brazil, was hit with a 50% tariff, which put a significant burden on those buying coffee. While a possibility for a refund of the tariffs paid dangles overhead, at least one roaster isn’t holding their breath.
As reported by Fortune, an estimated $133 billion have been collected by the now deemed illegal tariffs, and unwinding them all will prove to be challenging. So challenging in fact that the AP is already reporting that consumers shouldn’t expect a refund.
But the door is still open for businesses, though they aren’t holding out a lot of hope. One coffee roaster, Superior Coffee Roasting Co in Sault Ste. Marie, Michigan, is such. Their owner, Ron Kurnik, tells Fortune that he already had to raise prices by 6% on two separate occasions due to the tariffs—as well as the reciprocal tariffs levied by Canada, where much of Superior’s business comes from—and while he is happy with the Supreme Court’s ruling, he doesn’t think a refund is likely. “It’s like a nightmare we just want to wake up from,” he states.
Already, a coalition of small businesses known as We Pay The Tariffs have issued a statement demanding Congress deliver “full, fast, and automatic” tariff refunds. They have created a sign-on letter containing over 800 small businesses requesting the refund, including multiple coffee companies. You can sign the letter here.
Of course, whether any refunds will be issued remains, for the time being at least, at the discretion of the government. And shortly after the Supreme Court decision was made, the President announced a new 150-day across the board tariff of 10% of all imports. (It grew to 15% over the weekend.) Thus one might reasonably opine that the administration does not currently seem sympathetic to the idea. But on Monday, Democrats in both the House and the Senate introduced legislation compelling the government to refund the tariffs. In the Senate bill, Customs and Border Patrol would have 180 to return the funds along with interest.
Zac Cadwalader is the managing editor at Sprudge Media Network and a staff writer based in Dallas. Read more Zac Cadwalader on Sprudge.
