- Today
- Holidays
- Birthdays
- Reminders
- Cities
- Atlanta
- Austin
- Baltimore
- Berwyn
- Beverly Hills
- Birmingham
- Boston
- Brooklyn
- Buffalo
- Charlotte
- Chicago
- Cincinnati
- Cleveland
- Columbus
- Dallas
- Denver
- Detroit
- Fort Worth
- Houston
- Indianapolis
- Knoxville
- Las Vegas
- Los Angeles
- Louisville
- Madison
- Memphis
- Miami
- Milwaukee
- Minneapolis
- Nashville
- New Orleans
- New York
- Omaha
- Orlando
- Philadelphia
- Phoenix
- Pittsburgh
- Portland
- Raleigh
- Richmond
- Rutherford
- Sacramento
- Salt Lake City
- San Antonio
- San Diego
- San Francisco
- San Jose
- Seattle
- Tampa
- Tucson
- Washington
High Point Today
By the People, for the People
Rug Importers Seek Tariff Refunds After Supreme Court Ruling
Jaipur Living and Rugs America file lawsuits against U.S. Customs and Border Protection seeking refunds on tariffs paid during policy's nearly five-month run.
Mar. 23, 2026 at 11:05am
Got story updates? Submit your updates here. ›
Rug importers are heading to court to recover millions of dollars in tariffs paid on Indian goods after the U.S. Supreme Court struck down the President's duties imposed under the International Emergency Economic Powers Act (IEEPA). Two companies, Jaipur Living and Rugs America, have already filed lawsuits against U.S. Customs and Border Protection seeking refunds on tariffs paid during the policy's nearly five-month enforcement.
Why it matters
The rapid changes in tariff policy have created a great deal of uncertainty for rug importers and retailers, disrupting U.S. rug imports from India, a major supplier. The industry is seeking to recoup the costs of the tariffs and stabilize the supply chain.
The details
The tariffs were introduced in August 2025 when the administration imposed a 50% duty on Indian goods under the IEEPA, citing India's continued imports of Russian oil. The rate remained in place through January 2026 before being reduced to 18% in February as part of a trade agreement. Following the Supreme Court's ruling, the duties should revert to the baseline 10% tariff rate, although the administration has since moved to raise it to a new 15% universal level.
- The tariffs were introduced in August 2025.
- The 50% tariff rate remained in place through January 2026.
- The tariff rate was reduced to 18% in February 2026 as part of a trade agreement.
- The Supreme Court struck down the tariffs in March 2026.
The players
Jaipur Living
A rug importing company that has filed a lawsuit against U.S. Customs and Border Protection seeking refunds on tariffs paid.
Rugs America
A rug importing company that has filed a lawsuit against U.S. Customs and Border Protection seeking refunds on tariffs paid.
U.S. Customs and Border Protection
The government agency that collected the tariffs on Indian goods.
International Emergency Economic Powers Act (IEEPA)
The law under which the President imposed the tariffs on Indian goods.
India
A major supplier of handwoven rugs to the U.S. market, which was impacted by the tariffs.
What they’re saying
“This action is necessary to ensure Plaintiff (Jaipur Living) obtains its own judicial relief. In a press conference, the President made clear that the administration will not issue refunds without a court order obtained through litigation.”
— Jaipur Living
“This separate action is necessary to obtain a declaratory judgment and refund, as the Supreme Court's decision does not itself automatically provide refunds to individual importers. Accordingly, for itself, Plaintiff (Rugs America) seeks a declaration that the IEEPA Duties are unlawful and (request) a full refund with interest, as required by law.”
— Rugs America
What’s next
The judge in the cases filed by Jaipur Living and Rugs America will decide whether to grant the requested refunds on the tariffs paid.
The takeaway
The rug industry's legal challenges highlight the broader vulnerability of global supply chains to sudden policy shifts, underscoring the need for more stable and predictable trade policies to support long-term business planning and investment.
