Recently, the Supreme Court found that Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify tariffs was unjust, and in turn, companies affected are seeking compensation for it. Among them are Nintendo, Lenovo, Dyson, Epson, and more.
As reported by The Register, Nintendo’s complaint (PDF warning) argues for “Defendants [US government] to promptly refund, with interest, any IEEPA duties paid by Plaintiff [Nintendo] regardless of liquidation status, or alternatively enter a money judgment in the same amount.”
In Nintendo’s complaint, it points to the collection of more than $200 billion in tariffs from the US government. It also notes that the Supreme Court case that argued against Trump’s use of the IEEPA doesn’t mention refunds to those hit with tariffs.
Nintendo was put in a very strange spot by tariffs last year. As well as tariffs naturally affecting sales of the Nintendo Switch and peripherals, it delayed the price announcement of the Nintendo Switch 2 in the US. A few weeks after this pricing delay, Nintendo did confirm the Switch 2 would be selling for its original price, but this turmoil naturally affected the announcement and reception of Nintendo’s latest console.
Lenovo’s complaint is very similar to Nintendo’s. It (PDF warning) seeks refunds, as well as the payment of attorney fees and costs, alongside “providing such other relief as the court deems proper and necessary”.
(Image credit: Future)
Nintendo and Lenovo are both looking for interest on top of refunds.
These cases have the potential to set a precedent. The likes of Dyson and Epson have also jumped into the legal ring, and if these companies manage to get refunds and any other compensations, it would become easier for subsequent suits to go through.
If successful, the precedent could raise an interesting question should the likes of Sony file. Sony has raised the price of its consoles, citing a ‘challenging economic environment‘, so if tariffs are refunded and users still paid more for their devices previously, the only ones who lose out are those who paid the extra price in the interim.
Just last week, though, the Customs and Border Protection said it couldn’t comply with a refund order until at least April. The hundreds of billions of dollars, with over 300,000 importers and 53 million entries, would require significant labour and a reinvestment into its technology. This is to say, even if awarded, it may take some time for the refund process to start.
