US Supreme Court invalidates Trump’s emergency tariffs: Will pet companies claim refunds?

On 20 February, the Supreme Court of the United States issued a decision concerning tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

The act gives the President economic authorities, such as the authority to regulate or prohibit certain imports, to address emergencies declared under the National Emergencies Act. According to the Court’s interpretation, imposing tariffs is not part of these powers.

Following the decision, the US Court of International Trade (CIT) ordered that importers may be eligible for refunds of the tariffs imposed on them, stating that it is responsible for analyzing any claims. However, it is still unclear how this process will unfold and when companies will receive these refunds.

According to the American Pet Products Association (APPA), the US pet industry saw an increase of approximately 29% in tariffs over the past year.

BARK to seek refunds

In March, American omnichannel dog brand BARK announced it would request refunds. “The company intends to maintain all legal and administrative rights to the recovery of IEEPA tariffs paid; however, there is no assurance as to the timing or amount of any recovery.”

According to the company, it has paid approximately $15.4 million (€13.2M) in incremental tariffs, with $10.5 million (€9M) allocated to the cost of goods sold during the fiscal year ending 31 March 2026.

The information was published alongside a statement in which BARK says it completed a series of cost reduction initiatives during the fourth quarter of fiscal year 2026 as part of a broader effort to improve operating efficiency.

The company reported negative results at the beginning of February. In the third quarter, ending 31 December, its revenue fell 22.1% year-over-year (YoY) to $98.4 million, below guidance. The company also posted a net loss of $8.6 million (€7.4M).

Impact on US retailers

Central Garden & Pet also notes the impact of tariffs. During the release of its earnings at the beginning of February, Chief Financial Officer (CFO) Bradley G. Smith said, “Unchanged from the first quarter, we currently estimate [an] incremental YoY gross tariff exposure of roughly $20 million (€17M) for the fiscal year, concentrated in the pet segment.”

“We expect to mitigate the impact through pricing actions, portfolio management and supply chain initiatives,” Smith concluded.

Last year, Sabrina Simmons, Petco’s CFO, said that tariffs started impacting the company’s cash flow. “The first time we saw a tariff impact flow through our P&L [profit & loss], through cost of goods sold, in any meaningful way, is the third quarter,” she analyzed, while forecasting a bigger hit during Q4.

This year, besides confirming the forecast for the impact of tariffs on the American pet retailer, Simmons told investors that the company is optimistic about the possibility of refunds.

Pet companies seek guidance

APPA’s Chief Marketing Officer, Patrick O’Brien, tells GlobalPETS that the association is closely monitoring the litigation in order to assist pet companies.

“We know many of our members are actively following this lawsuit, and the strong turnout for our recent Office Hours underscores how important timely, practical clarity is right now,” O’Brien says.

According to the association, companies should consult qualified trade counsel and compliance professionals as enforcement and refund processes take shape.

“We hope the Supreme Court’s decision, together with the CIT’s ruling, will help stabilize policy implementation.”

The APPA believes that “greater predictability” will enable pet business leaders across the industry to make informed, strategic decisions with more confidence.