10 Wisconsin Companies Sue Trump for Tariff Refunds
Kohl’s, Milwaukee Tool, others claim 'financial harm' from 'illegal power grab.'
Milwaukee Tool’s downtown Milwaukee office building. Photo by Jeramey Jannene.
Ten Wisconsin-based companies — including Kohl’s, Milwaukee Tool and Ashley Furniture — had sued the Trump administration over its tariff policy before the U.S. Supreme Court struck it down, according to court documents.
They are seeking refunds for the tariff duties. Some also accuse the import taxes of violating the U.S. Constitution.
President Donald Trump has imposed sweeping tariffs on international trade since his return to office, using the International Emergency Economic Powers Act to justify the move. But, the 10 companies suing his administration claim he had no jurisdiction to do so. In December, some Wisconsin companies started fighting the policy in court, hoping the litigation could help their chances of receiving compensation for paid tariffs.
Though the nation’s highest court found the tariffs unconstitutional in a 6-3 decision Feb. 20, the Wisconsin businesses could face a lengthy legal process in hopes of rebates.
The Wisconsin companies suing range in size, and include well known names like Kohl’s, Milwaukee Tool, Ashley Furniture and Duluth Holdings. Others include the HellermannTyton Corporation, Waukesha Bearings Corporation, Weyco Group Inc., Lamplight Farms and Colony Brands.
Weyco Group was one of the first of the companies to sue. Their suit requested that the U.S. Court of International Trade “declare the president’s unprecedented power grab illegal.”
The footwear company now wants an “immediate refund” with interest, according to the document.
Milwaukee Tool filed its suit last month. The complaint argues the imposed tariffs had “little relation” to the “purported national emergency” Trump used to justify them.
“These tariffs have caused (Milwaukee Tool’s) business to suffer direct, cognizable financial harm as it has faced additional costs and will continue to do so unless and until the challenged orders are vacated,” the document says.
A continuation of the tariffs would cause the company “irreparable damage,” the suit alleges.
A spokesperson for Milwaukee Tool told Wisconsin Public Radio that they do not typically comment on active litigation but added that the “action was taken to preserve (the company’s) rights.”
Patrick Sobkowski is a political science professor at Marquette University. He said the “erratic” tariff situation makes it hard to determine if the companies suing Trump will actually receive payments.
“There are so many different moving parts that we’ll need to see how things play out in the long run,” Sobkowski said.
He said that could mean anywhere from months to a couple of years.
Soon after the Supreme Court’s decision, Trump vowed to impose new 10 percent tariffs globally. It’s under a law restricted to 150 days that has not been used to apply tariffs before.
Sobkowski said the proposed tariffs could affect the length of the case. He also mentioned multiple ways the lawsuits could pan out.
There is a chance the Supreme Court decides to take one of the cases. The Trump administration could try and “throw a bone” by refunding some companies. Or, they could attempt to delay the payments.
“It’s a political mess, it’s an economic mess,” Sobkowski said. “There are multiple things that will need to be addressed in order to get a relatively clean solution here.”
Sobkowski said he suspects other companies to start filing suits as well in hopes of potential rebates.
Kohl’s and Milwaukee Tool, other Wisconsin companies sue Trump for tariff refunds was originally published by Wisconsin Public Radio.
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