Hello,
Companies are waiting for refunds on tariffs the Supreme Court struck down last month, and now small businesses and several states are taking President Donald Trump's newest tariffs to court.
Spice importer Burlap & Barrel and toy maker Basic Fun have sued the Trump administration. They argue the president can't simply use a different law to reimpose a global 10% tax on imported goods after the top court knocked down his previous tariffs.
The top U.S. court ruled on February 20 that most of Trump's tariffs were illegal, tossing out duties he'd imposed under the International Emergency Economic Powers Act.
The U.S. customs agency is setting up a system to process refunds of $166 billion in tariff payments going back to around 330,000 importers, and says it'll be ready within 45 days.
The two companies' lawsuit echoes what 24 states are already arguing: that Trump is imposing his new tariffs based on a misreading of an archaic trade law that was meant to address monetary concerns rather than routine trade deficits.
Despite Trump's global trade war, China kicked off 2026 with exports that blew past forecasts. Electronics demand has been red-hot, and the economy's on track to beat last year's record $1.2 trillion trade surplus—unless there's a bigger energy and shipping crisis from the war in Iran.
China's export surge could gain even more steam. Economists say March data will likely show factories racing to ship goods to the U.S. while they can still benefit from the Supreme Court's tariff reprieve, with Chinese firms pushing back into lower-end sectors like textiles.
Meanwhile, Volkswagen is bracing for another rough year dominated by tariffs and its struggle to win back China. Europe's biggest carmaker reported a sharp drop in operating profit and is only forecasting a modest rebound for its shrinking margins.
Like other automakers, Volkswagen has been hit hard across its major markets. U.S. tariffs have cost the company billions, while local competitors have eaten into its share of China, the world's largest car market. For more news from the auto industry, sign up to our weekly Auto File newsletter.
Read the latest tariff headlines below. If you like this newsletter or have suggestions on how we can make it better, send me an email at noel.randewich@thomsonreuters.com.
