U.S. Supreme Court Overturns Trump Tariffs: Companies Demand Billions in Refunds

The U.S. Supreme Court, by a 6-3 majority, dealt a severe blow to the administration of Donald Trump, ruling that imposing tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977 was unlawful. The judges emphasized that the authority to regulate foreign trade belongs to Congress, and the president cannot arbitrarily seize it under the pretext of a 'security threat'. This decision concerns tariffs introduced since April 2025 and has triggered a wave of announced lawsuits for refunds. Experts estimate that the total claims could range from $134 to $175 billion. Among those interested in recovering money are industry titans and smaller firms, such as New York wine importer Victor Schwartz, who initiated the legal battle. Despite the court defeat, Donald Trump does not intend to abandon protectionism. On the Truth Social platform, he announced a plan to introduce a new, global tariff rate of 15 percent, effective from February 24. The White House is now trying to use other legal mechanisms to circumvent the court ruling, which increases uncertainty in the markets. In Switzerland, this situation has caused a political earthquake. Left-wing groups, led by the Green Party, are demanding an immediate break in trade negotiations with Washington. Federal Council has decided to continue talks, hoping to secure permanent relief for national exports. The International Emergency Economic Powers Act (IEEPA) of 1977 was created to enable the president to quickly respond to international crises, such as terrorist attacks or sudden armed conflicts, by freezing assets or restricting trade with hostile entities. For Swiss companies, such as luxury watchmaker Breitling or shoe manufacturer Schoenenberger, the ruling is a signal to act. Georges Kern, CEO of Breitling, confirmed that the brand will seek refunds of paid amounts, which he described as 'significant'. Meanwhile, a delegation of Swiss parliamentarians traveled to Washington to lobby directly in Congress and the Office of the U.S. Trade Representative for stabilization of trade relations. However, analysts warn that the period of legal disputes over refunds will lead to chaos in supply chains and may prompt the U.S. to adopt even more aggressive retaliatory policies towards European partners. 175 mld USD — may be the total amount of refunds for illegal tariffs In Switzerland, a dispute is growing over whether the reduction of tariffs on American fish and seafood, enacted by the government in November as part of a mutual trade agreement, should be maintained in the face of escalating conflict. The opposition argues that most-favored-nation clause is being violated by Trump, making further concessions pointless. However, the federal government maintains that breaking off dialogue now would mean losing the chance to protect the interests of Swiss exporters from new, higher tariffs announced by the president. „It is a dark day for American workers, but we will win this fight.” — Donald Trump