Affiliates of Japanese Firms Sue US for Tariff Refunds

Affiliates of nine Japanese firms have filed lawsuits with the US Court of International Trade in New York for full refunds of the additional tariffs they had to pay this year, in the event of the Supreme Court ruling the levies illegal. 

The companies include Ricoh, Sumitomo Chemical, Toyota Tsusho, Ushio Inc. and Yokohama Rubber Co. 

In August, a US appeals court upheld a lower court's decision and ruled that many of US President Donald Trump's sweeping tariffs are illegal and void. 

According to recent court filings, the US affiliates argue that the imposition of "reciprocal" tariffs by the Trump administration, using the International Emergency Economic Powers Act without congressional approval, is unlawful. Meaning, Trump had exceeded his authority. 

Their complaints were filed after the top court held oral arguments on November 05, during which the justices appeared skeptical of Trump's authority to bypass Congress in imposing the double-digit tariffs on imports from nearly all countries. 

The affiliates took legal action, believing refunds to importers would not be guaranteed even if the Supreme Court struck down the said tariffs. 

Major US retailer Costco have filed a similar lawsuit on November 28, demanding a full refund.