Tariff Ruling Leaves Small Businesses Uncertain

A recent US Supreme Court ruling invalidating tariffs introduced during Donald Trump’s presidency has opened the possibility of up to $175bn in refunds for businesses that paid import duties. However, many small business owners remain uncertain whether they will ever recover the money.

The decision potentially allows companies to claim reimbursements for tariffs previously collected on imported goods. Yet the process for securing refunds remains complex and could involve years of legal proceedings. Trump has suggested the matter could remain tied up in the courts for as long as five years, adding to uncertainty for smaller companies that have already absorbed higher operating costs.

Across multiple industries, small business owners say the tariffs significantly increased expenses and disrupted financial planning. Elizabeth Vitanza, who runs a lighting and home furnishings business in Los Angeles with her husband, John Ballon, said many brands they supply raised prices by at least 12 per cent during the past year. In anticipation of tariff increases following the 2024 election, the company placed a large order with a Swedish supplier in an effort to accelerate production, but the shipment still incurred a five-figure tariff charge.

Other businesses report similar pressures. A furniture maker in Texas said tariffs raised the cost of imported lumber and cabinet hardware, forcing price increases. Meanwhile Granite Gear, a Minnesota-based outdoor equipment company, experienced significant changes in import duties on products manufactured in Vietnam. According to company manager Rob Coughlin, tariffs on certain goods rose from 18 per cent to 46 per cent before later falling to 20 per cent following negotiations between the US and Vietnam.

Although more than 1,000 companies have filed legal challenges related to the tariff policy, many smaller firms remain reluctant to pursue refunds. Some business owners say the potential cost of legal representation and administrative work could outweigh the value of any reimbursement.

For many companies, the uncertainty surrounding possible refunds illustrates the broader difficulty small businesses face in navigating trade policy changes and complex legal processes.