Tariffs imposed by the Trump Administration have taken a considerable toll on Vermont’s economy. Several Vermont businesses, such as Terry Precision Cycling, LLC, played a key role in challenging Trump’s tariffs.[1]
How did the Supreme Court’s Ruling Impact the Tariffs?
On February 20, 2026, the U.S. Supreme Court held that President Trump does not have the authority to impose tariffs under the International Economic Emergency Powers Act (the “IEEPA”).[2] The Court’s analysis focused on separation of powers principles, emphasizing that the Constitution grants Congress the “Power to Lay and collect Taxes, Duties, Imposts and Excises.”[3] The Trump Administration argued that Congress delegated its power to impose tariffs to the executive branch in the IEEPA, citing language such as “regulate” and “importation.”[4] However, the Court stated that “Congress would not have delegated ‘highly consequential power’ through ambiguous language,” particularly when “the purported delegation involves the core congressional power of the purse.”[5] As a result, U.S. Customs and Border Protection (“CBP”) is required to issue approximately $166 billion in tariff refunds to eligible businesses.[6]
How Can Gravel & Shea Help?
On April 20, 2026, CBP launched a new system for processing refund requests. Currently, only importers of record and authorized customs brokers are eligible for refunds, and only for tariffs introduced under the IEEPA. In order to file for a refund, applicants must have an Automated Commercial Environment portal account with CBP. Refunds are expected to be issued within sixty (60) to ninety (90) days of submitting the request.[7] On May 12, 2026, CBP began issuing refunds.[8]
Please contact Petra Davenport (pdavenport@gravelshea.com) or Eleanor Moody (emoody@gravelshea.com) at Gravel & Shea PC if you have questions or would like assistance.
[1] Paula Dyba, Terry Takes On Tariffs, Terry Peloton Blog (Oct. 30, 2025), https://terrycycling.com/blogs/peloton; Tom Davis, Vermont Firms Brace for Tough Battle to Reclaim Tariff Cash — Consumers Likely Left Empty-Handed, Compass Vermont (Feb. 26, 2026), https://www.compassvermont.com/p/vermont-firms-brace-for-tough-battle.
[2] Learning Resources, Inc. v. Trump, 146 S. Ct. 628 (2026).
[3] 146 S. Ct.at 637 (citing U.S. CONST. art. I, § 8, cl. 1).
[4] “[The Government] reads the words ‘regulate’ and ‘importation’ to effect a sweeping delegation of Congress’s power to set tariff policy.” Id. at 638.
[5] Id. at 640.
[6] Theo Wells-Spackman, Vermont businesses seek thousands in tariff refunds as federal system launches, VTDigger (Apr 20, 2026), https://vtdigger.org/2026/04/20/vermont-businesses-seek-thousands-in-tariff-refunds-as-federal-system-launches/.
[7] Press Release, Senator Welch, Welch Urges Vermont Small Businesses to Apply for Tariff Refunds, Get Relief from Trump’s Trade War (Apr. 20, 2019), https://www.welch.senate.gov/welch-urges-vermont-small-businesses-to-apply-for-tariff-refunds-get-relief-from-trumps-trade-war/; International Emergency Economic Powers Act (IEEPA) Duty Refunds, U.S. Customs and Border Protection (May 13, 2026), https://www.cbp.gov/trade/programs-administration/trade-remedies/ieepa-duty-refunds.
[8] Tony Romm, Tariff refunds Begin to Reach Business as Trump Lashes Out at Court, The New York Times (May 13, 2026), https://www.nytimes.com/2026/05/13/business/economy/tariff-refunds-trump.html.
