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"Return the Tariff Refunds": Japanese Companies Facing Successive Lawsuits by US Consumers

"Return the Tariff Refunds": Japanese Companies Facing Successive Lawsuits by US Consumers
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▲ A Toyota dealership in California (File Photo)

In the wake of a US federal court ruling declaring mutual tariffs illegal, US consumers are filing lawsuits against Japanese companies operating locally, demanding refunds equivalent to the tariff hikes.

According to Kyodo News on the 13th, US local subsidiaries of Japanese companies, including Toyota Motor, Fast Retailing (operator of Uniqlo), Nintendo, and Sony, have been slapped with such lawsuits.

Consumers argue that because they purchased goods whose prices were inflated due to tariffs, it is unfair that they are not receiving a share of the tariff refunds, and they are demanding partial refunds of their purchase payments.

Regarding the Trump administration's imposition of high tariffs on major trading partners in April of last year based on the International Emergency Economic Powers Act (IEEPA), the US Supreme Court ruled last February that the measures exceeded government authority and invalidated them.

Consequently, the US Court of International Trade ordered the Trump administration to proceed with tariff refund procedures for importers, and refund procedures totaling approximately 166 billion dollars (235 trillion won) are currently underway for companies.

In the case of Toyota Motor, a consumer who purchased a new car in Virginia filed a lawsuit demanding a refund, claiming that various parts were imported from mutual tariff target countries and reflected in the vehicle price.

The consumer reportedly argued that "if (Toyota) receives the refunds, it amounts to double compensation."

While Toyota's response to this has not been confirmed, other Japanese companies facing similar lawsuits are asking courts for dismissals.

Fast Retailing requested a dismissal, arguing that the relationship between the purchased goods and the tariffs is based on the plaintiff's speculation, while Nintendo stated its position to fight the case in court, saying that "customers made their purchases fully understanding the advertised prices."

The Sony Group, which expects to receive about 80 billion yen (710.6 billion won) in tariff refunds, is also reportedly planning to request the dismissal of the lawsuit claims.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.
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