Billions of dollars in tariff refunds are at stake after the Supreme Court ruled President Donald Trump’s “Liberation Day” tariffs illegal – and Democrats are warning that without pressure, much of that money could stop short of the small businesses and consumers who actually paid it.
Sen. Edward Markey (D-Mass), ranking member of the Senate Small Business Committee, sent letters last week to major retailers and shippers urging businesses to refund consumers and small businesses for the sweeping 15% tariffs on all imports entering the US that were collected illegally under Section 122 of the US Trade Act of 1974.
The letter is among several actions taken by policymakers and companies that came after the Supreme Court voted 6-3 to strike down the tariffs under Trump’s enactment of International Emergency Economic Powers Act (IEEPA).
While the Supreme Court’s decision invalidates the president’s ability to invoke tariffs under IEEPA, it did not clarify how refunds should be handled. Since the ruling, Congress and courts are scrambling to figure out how or if refunds are possible.
Markey’s letter as political escalation
Markey’s letters were sent April 22 to Amazon, Walmart, Costco, FedEx, UPS and DHL. His core argument in each correspondence emphasized consumers and small businesses bearing the brunt of the cost of goods due to tariffs.
Customs and Border Protection collected up to $182 billion in tariffs, which includes hundreds of millions of dollars more due in interest, between Feb. 4 and Feb. 23, 2026. Markey emphasizes companies “have a legal and ethical obligation to make consumers whole.”
Companies can now issue refunds for illegally collected IEEPA tariffs through CBP’s Consolidated Administration and Processing of Entries (CAPE) portal – which Markey urges companies to access.
“With this portal now operational, your company can now submit its claim for tariff refunds. The question that now demands a clear and prompt answer is: What concrete steps will your company take to pass those refunds on to the consumers and small businesses who paid for the tariffs in the first place?”
Broader Democratic push on tariffs
Markey’s criticism of the Liberation Day tariffs began as soon as they were introduced a year ago. His recent letters are part of ongoing efforts by other Senate democrats, including Senate Minority Leader Chuck Schumer (D-NY) against the tariffs. While Democrats are the most vocal against tariffs in Congress, few Senate Republicans, including Rand Paul (R-KY), Lisa Murkowski (R-Alaska), Susan Collins (R-Maine) and Mitch McConnel (R-KY) have crossed party lines to vote against Trump’s tariffs on Canada and Brazil last year.
Last month, Markey, Schumer and Senate democrats introduced the Small Business Liberation 2.0 Act, which would exempt small businesses from paying Section 122 tariffs, refund those businesses for any Section 122 tariffs paid and prevent price gouging for consumers.
“America’s small businesses cannot bear another bruising round of uncertainty and consumers in Massachusetts and across the country cannot foot the bill for another punishing round of Trump’s tariff taxes. And they certainly cannot wait for another court decision,” Markey said.
Small businesses aren’t waiting
Small businesses are seeking relief not just through Congress, but through the courts.
New York-based spice company Burlap & Barrel and non-profit legal aid Liberty Justice Fund (along with 24 other states) filed a lawsuit last month against President Trump for unlawful tariffs under Section 122.
The case is currently pending before the US Court of International Trade as plaintiffs expect an appeal from the federal government, according to Burlap & Barrel’s Co-founder Ori Zohar.
The outcome of the case could shape how tariffs are imposed, challenged and paid to businesses across the food industry.
