PA Businesses Seek $4.5B in Tariff Refunds After Court Ruling

A coalition of over 1,100 small businesses, including 42 in Pennsylvania, report paying billions in 'illegal' tariffs.

Mar. 30, 2026 at 10:08pm

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A high-end, photorealistic studio still-life photograph featuring a stack of hand-knotted carpets, a rolled-up outdoor backpack, and a bundle of down feathers, arranged elegantly on a clean, monochromatic background to symbolize the impact of tariffs on small businesses.The tariffs imposed on imported textiles and outdoor gear have forced small businesses to get 'scrappy' in order to stay competitive and support their overseas artisan partners.Lititz Today

A coalition of over 1,100 small businesses, including 42 in Pennsylvania, have reported paying $4.5 billion in 'illegal' tariffs nearly a year after the U.S. Supreme Court struck down a category of fees imposed by former President Trump. Businesses like the Bunyaad Marketplace in Lititz, PA are now seeking refunds, saying the tariffs have forced them to cut costs and pass higher prices on to customers.

Why it matters

The tariffs have had a significant impact on small businesses, particularly those in the textile and outdoor gear industries that rely on imported materials. Companies say the added costs have forced them to reduce staff, cut advertising, and raise prices, making it harder to stay competitive and support their overseas artisan partners.

The details

The Bunyaad Marketplace, a fair trade business in Lititz, PA that sells hand-knotted carpets from Pakistan, has had to be 'scrappy' to deal with the higher costs from the tariffs. Co-owner Jenni Leister says they've had to minimize overhead and avoid passing all the increased costs on to customers. Other businesses like Rig'Em Right in North Carolina and Down Decor in Ohio have also been impacted, with Down Decor laying off half its workers due to the tariff costs.

  • In February 2026, the U.S. Supreme Court struck down a category of tariffs imposed by former President Trump.
  • Nearly one year after the court ruling, a coalition of over 1,100 small businesses reported that companies in Pennsylvania had paid $4.5 billion in 'illegal' tariffs.

The players

Bunyaad Marketplace

A fair trade business in Lititz, PA that sells hand-knotted carpets from Pakistan.

Jenni Leister

Co-owner and Director of Operations of the Bunyaad Marketplace.

Rig'Em Right

A North Carolina-based outdoor gear company that produces items like camping chairs and backpacks.

Matthew Cagle

Owner of Rig'Em Right.

Down Decor

An Ohio-based company that produces down bedding, with most components imported from China.

Andy Payne

Co-owner of Down Decor.

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What they’re saying

“When the tariffs came in for a lot of the fair traders that we work with, we certainly did see costs go up and we knew how hard that was hitting them.”

— Jenni Leister, Co-owner and Director of Operations, Bunyaad Marketplace

“This is the first year since I started my company in 2006 that we didn't grow. We were on a really sharp growth trajectory … growing like crazy and then all of a sudden we hit a year where we're flat.”

— Matthew Cagle, Owner, Rig'Em Right

“Even if we get a refund, we're not going to see very much of it because our customers expect to get it back.”

— Andy Payne, Co-owner, Down Decor

What’s next

Pennsylvania Gov. Josh Shapiro has joined 23 other state attorneys general and governors in a lawsuit filed at the Court of International Trade challenging the Section 122 tariffs as unconstitutional and in violation of federal law. The federal government will need to determine a process for refunding the $4.5 billion in tariffs paid by Pennsylvania businesses.

The takeaway

The tariffs imposed by the Trump administration have had a significant financial impact on small businesses in Pennsylvania and across the country, forcing them to cut costs, reduce staff, and pass higher prices on to customers. With the Supreme Court ruling that the initial tariffs were illegal, businesses are now seeking refunds and calling for a streamlined process to recoup the billions of dollars they were forced to pay.