German companies are poised to receive millions in refunds following a significant legal setback for Donald Trump’s tariff policies. While legal experts advise prompt action, the actual disbursement of funds could extend over several years.
In April 2025, Donald Trump unveiled a board in the White House Rose Garden, surprising the world with a list of numerous countries and the import duties they would owe the USA. Trump grandly dubbed this “Liberation Day,” citing the 1977 “International Emergency Economic Powers Act” (IEEPA). This emergency legislation allows a president to implement economic measures without Congressional approval, such as freezing assets or imposing trade restrictions. However, tariffs had not historically been part of the IEEPA’s scope. Despite this, the U.S. proceeded to levy additional tariffs, claiming authority under the IEEPA.
A pivotal turn of events occurred on February 20, 2026, when the Supreme Court declared the tariffs imposed in April of the previous year unlawful. Trump condemned the ruling as a disgrace, while economists estimate that authorities will need to refund over $175 billion in collected duties.
Logistics giant FedEx was among the first major U.S. companies to file for a refund. According to a Wall Street Journal analysis, at least 1,800 more firms followed suit within five days. Experts consulted estimate that at least 2,000 companies have filed claims, including German DAX-listed corporations and mid-sized enterprises, many of which are seeking multi-million dollar reimbursements.
Tariff Refunds: A Multi-Step Process
How should companies proceed, and when is a lawsuit advisable? Eckart Gottschalk, a trade law attorney at CMS, recommends that companies first conduct a thorough inventory. “Those who fail to comprehensively document customs payments, imports, and price adjustments, and observe deadlines, risk forfeiting their refund claims,” he warns. A small, double-digit number of German companies have already contacted his firm, particularly those in the mechanical engineering, automotive, and chemical sectors, which were significantly impacted by the tariffs. These companies are now seeking their money back, although it is likely to be a protracted process.
How Tariffs Are Collected
Gottschalk, however, tempers expectations regarding the ease of the process. Customs clearance is inherently complex: importers must first submit an import declaration upon bringing goods into the country. This declaration includes specific details about the products, such as their value, the time, and quantity of the shipment. Based on this declaration, importers must pay duties, initially only estimated by themselves. Following this, a period of approximately ten months begins during which the authority must finalize the payable amount. Once this final calculation is made, it leads to “liquidation,” which is essentially a demand for payment. Between initial payment and liquidation, companies can request a correction if, for instance, duties were calculated too high or incorrectly. If the customs authority rejects this objection, a 180-day window opens after liquidation during which companies can still file a protest. Should the authority reject both objections, companies can then sue at the CIT (Court of International Trade). This trade court decides whether and how much the authority must refund. Notably, companies can pursue action with both the customs authority and the court simultaneously.
Delays Attributed to Trump-Era Authorities
“We advise our clients to explore both avenues concurrently,” states Tobias Zuber, an attorney at Noerr law firm. Companies must adhere to customs authority deadlines and swiftly take legal action to secure refunds as quickly as possible. Zuber mentions that his firm is advising several German companies on reclaiming tariffs, involving multi-million dollar sums. Zuber assesses the chances of success as high: “Legally, there’s no question that these companies are entitled to a refund.” He expects a point will be reached where the customs authority must repay the money. However, Zuber also anticipates significant delays. To date, the customs authority has generally rejected both “corrections” and protests. Cases at the CIT are being paused in large numbers. A lack of internal processes and the sheer volume of affected companies are overwhelming the court. Zuber also suspects a deliberate delay tactic. The government could file counterclaims before the CIT, which would create more work for the court. “Furthermore, I have the impression that the U.S. administration will try everything to delay these processes and claims beyond the current legislative period,” he adds.
Potential for Supply Chain Disputes Between Companies
Alexander Ehrle, an attorney at Luther law firm, emphasizes that not every German company supplying goods to the U.S. automatically has a right to refunds. “For German companies, the common scenario is that they are suppliers, but the customer in the U.S. ultimately imports the goods.” Since the importer pays the tariffs, it is also the importer who must secure the refund. “Many European and German companies are not directly affected by the court’s decision,” Ehrle notes. However, in practice, trade relationships are not always straightforward. Clauses often exist between companies that distribute the impact of tariffs between both parties. Due to the high U.S. tariffs, German companies, for example, reduced prices to accommodate their American business partners, and sometimes compensatory payments were made. “This customs law matter between the importer and customs authorities then transforms into a contractual issue between the companies,” Ehrle explains. Thus, the Supreme Court’s ruling is not the final word. “I now anticipate a significant number of supply chain disputes between companies. Many will resort to courts or arbitration tribunals.”
Trump’s Response and Future Uncertainty
In response to the Supreme Court’s decision, Trump immediately enacted new tariffs of up to 15 percent, this time basing them on a 1974 trade law. The president’s unpredictability makes planning difficult for German companies. Nevertheless, these new tariffs are currently set to expire in July. What comes next remains unknown. “I now have the impression that many companies have grown accustomed to this back-and-forth and have developed corresponding strategies. Supply chains are being restructured, higher prices factored in, lobbying efforts intensified, and so on,” says Eckart Gottschalk. Given the nature of this U.S. president, they likely have no other choice.
