US Supreme Court Overturns Trump Tariffs: Companies Demand Billions in Refunds

The US Supreme Court, by a 6-3 majority, delivered a severe blow to the administration of Donald Trump, ruling that imposing tariffs under the 1977 International Emergency Economic Powers Act (IEEPA) was unlawful. The justices 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 imposed since April 2025 and has triggered a wave of announced lawsuits for refunds. Experts estimate the total claims could range from $134 to $175 billion. Among those interested in recovering money are industry titans and smaller firms, like New York wine importer Victor Schwartz, who initiated the legal battle. Despite the court defeat, Donald Trump does not intend to abandon protectionism. On Truth Social, 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's ruling, increasing market uncertainty. In Switzerland, this situation has caused a political earthquake. Left-wing groups, led by the Green Party, are demanding an immediate halt to trade negotiations with Washington. However, the Federal Council decided to continue talks, hoping to secure lasting relief for national exports. The 1977 International Emergency Economic Powers Act (IEEPA) was created to enable the president to respond quickly 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 shoemaker Schoenenberger, the ruling is a signal to act. Georges Kern, CEO of Breitling, confirmed that the brand will seek a refund of the amounts paid, which he described as 'significant'. Meanwhile, a delegation of Swiss parliamentarians traveled to Washington to lobby directly in Congress and the Office of the US Trade Representative for the stabilization of trade relations. However, analysts warn that the period of legal disputes over refunds will lead to chaos in supply chains and may push the US towards an even more aggressive retaliatory policy against European partners. 175 mld USD — may be the total amount of refunds for illegal tariffs In Switzerland, a dispute is growing over whether the unilateral reduction of tariffs on American fish and seafood, enacted by the government in November as a goodwill gesture, should be maintained in the face of escalating conflict. The opposition argues that the 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 the new, higher tariffs announced by the president. „It is a dark day for American workers, but we will win this fight.” — Donald Trump