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ARTICLE · 18 AUGUST 2026

Tariff Recovery Litigation: The Focus Shifts To Downstream Claims And B2B Customers

Carter Ledyard & Milburn LLP
Carter Ledyard & Milburn LLP
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Carter Ledyard & Milburn LLP

Carter Ledyard & Milburn LLP

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As tariff refunds exceed $100 billion, a new wave of litigation is emerging over who is entitled to recovered IEEPA duties. While consumer class actions face significant legal hurdles around pricing transparency and tracing, business-to-business customers with explicit tariff surcharges on invoices may have substantially stronger claims against their importer-distributors for refund sharing.

GlobalLitigation, Mediation & Arbitration
Donald Hawthorne
Donald Hawthorne

Tariff-recovery litigation is moving downstream. As of July 31, 2026, theU.S. Customs and Border Protection (CBP) has reported more than $100 billion in refunds of International Economic Emergency Powers Act (IEEPA) tariffs – held unlawful by the Supreme Court earlier this year. IEEPA tariff claimants increasingly are asking not whether importers will recover, but who is entitled to the recovered money.

Consumer suits face obstacles. While consumer suits are attracting attention in the press, they will need to overcome significant challenges, particularly where tariffs were not identified as a separate element of cost and were partially passed on and partially absorbed. 

B2B customers of importer/distributors will likely have stronger claims. In commercial transactions, contracts, invoices and a course of dealing may more clearly identify tariffs as a discrete pass-through cost that is potentially subject to recoupment when the importer obtains a refund.

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