Small Business Owners Express Doubt Over Tariff Refunds Following Supreme Court Decision
The US Supreme Court has recently invalidated Donald Trump's tariffs, potentially unlocking up to $175 billion in refunds for businesses that paid these import taxes. However, the path to reclaiming that money remains fraught with uncertainty, as legal complexities and administrative delays loom large. Trump himself has suggested the issue could be entangled in court battles for years, casting a shadow over any immediate relief for affected enterprises.
Navigating the Fallout of Global Tariff Wars
Across the nation, small businesses have grappled with the repercussions of Trump's global tariff conflicts, which have disrupted supply chains and inflated costs. In interviews with The Guardian, numerous owners shared how their operations and financial stability have been severely impacted.
Elizabeth Vitanza, co-owner of a lighting and home furnishings company in Los Angeles with her husband John Ballon, reported that all modern brands they collaborate with have increased prices by at least 12% over the past year. "None of this is pro-business or pro-American," Vitanza stated, highlighting the broader economic strain.
Following Trump's re-election in 2024, Vitanza and Ballon urgently placed a large order with a Swedish brand partner to avoid impending tariffs, yet still incurred a five-figure tariff fee. Ballon explained, "The money we had allocated for renovations, salary increases, and other business investments was suddenly diverted in substantial and unexpected ways." Vitanza added, "Why would anyone start a business right now? I wouldn't if I didn't have a firmly established one."
Industry-Specific Challenges and Price Hikes
A Texas-based furniture maker, who requested anonymity, noted that tariffs have driven up costs for imported lumber and cabinet hardware, materials not readily available domestically. This forced him to raise prices to maintain viability.
Rob Coughlin, manager of Granite Gear, a small outdoor gear company in Minnesota, described near-daily uncertainty since 2025's "liberation day." Initially facing an 18% duty, the tariff surged to 46% after Trump's reciprocal measures, later dropping to 20% following negotiations with Vietnam. Coughlin recounted panic during retailer meetings last spring, "We didn't know our pricing when we were going to start flowing product. How do I go to REI with pricing when I don't even know what it's going to be?" He observed that larger brands could resist price increases, but small firms like his lacked leverage, ultimately raising prices by 10-20%.
Dr. Charlie Elrod, founder of a natural health products company for livestock, attempted to absorb costs for six months before implementing a 5% price hike. "The tariffs, especially those on Brazil, have raised our costs by about $1 million in the last year," he wrote, adding that profitability has declined as a result.
Legal Battles and Refund Skepticism
Both before and after the Supreme Court ruling, over 1,000 companies filed lawsuits against the government over tariff policies. Recently, a US trade court judge ordered the government to begin paying billions in refunds to importers who paid tariffs deemed illegal.
Despite this, many small business owners remain skeptical about pursuing refunds. Vitanza mentioned tracking tariffs in a spreadsheet "in the hopes that one day we will have our ducks in a row to file a claim," but admitted they are not counting on it. Howard Trenholme, a bakery and cafe owner in Moab, Utah, said he had "not even considered" refunds due to the complexity and potential legal costs outweighing any possible return.
Coughlin echoed this sentiment, stating, "When I look at the money I would get refunded versus the possible legal fees... it could really hurt me in the long run." He further expressed distrust, "I will not try to claim a refund, as this administration has shown it is duplicitous in its dealings with the American people, and any attempt to collect will be a waste of time and money."
