U.S. affiliates of nine Japanese companies have sued the U.S. government, challenging the legality of tariffs imposed by the Donald Trump administration. The plaintiffs seek full refunds of the levies paid if the Supreme Court rules the measures illegal in related cases.
According to sources on Tuesday, U.S. affiliates of nine Japanese companies, including trading house Toyota Tsusho, have filed a lawsuit against the U.S. government contesting the legality of tariffs imposed under the Donald Trump administration. The other companies involved are Sumitomo Chemical, precision equipment maker Ricoh, Yokohama Rubber, NGK Insulators, lighting equipment maker Ushio, Kawasaki Motors, Proterial (formerly Hitachi Metals), and machine tool-maker Yamazaki Mazak.
The plaintiffs are demanding full refunds of the tariffs they have paid, should the U.S. Supreme Court rule in similar cases that the reciprocal tariffs and other measures are illegal. These tariffs were introduced under the International Emergency Economic Powers Act, which authorizes the president to address security threats, and also include those levied on China, Canada, and Mexico. Lower courts have already deemed the tariffs illegal, finding they exceed the president's authority.
The affiliates argue there is no assurance of refunds even if the Supreme Court finds the levies unlawful, and they seek a ruling to declare the tariffs illegal while barring the administration from imposing further ones. The Supreme Court is set to deliver its decision by year's end, at which point the U.S. government would be obligated to refund any illegally collected tariffs if ruled against.
This case highlights ongoing trade tensions between the U.S. and Japan, as Japanese firms grapple with the implications of Trump's protectionist policies.