The U.S. Supreme Court’s recent move to strike down most of the tariffs that have formed President Trump’s signature economic policy could open the opportunity for broadband and optical networking companies to pursue refunds from the government.
However, what’s unclear at this point is whether broadband and optical players think it’s worth the time to pursue refunds or to absorb the costs. As the Trump administration began proposing wide-scale tariffs last year, several major broadband and optical vendors noted they would realign their manufacturing capabilities as needed.
Despite the tariffs and uncertainty over programs like BEAD, broadband providers for one, continue to pursue their build-out plans and accept the situation as something they can't control.
Nevertheless, lawmakers are proposing what a possible refund program could look like. According to a Reuters report, three Senate Democrats have called for the government to refund roughly $175 billion in tariff revenue that the Supreme Court ruled was collected under illegal orders issued by President Donald Trump.
Sens. Ron Wyden of Oregon, Ed Markey of Massachusetts, and Jeanne Shaheen of New Hampshire introduced a bill on Monday that would require U.S. Customs and Border Protection to issue refunds within 180 days and pay interest on the refunded amount.
However, there are several unknowns about what a refund process would look like. For one, federal agencies have not spelled out what the process would look like, and trade experts note that pursuing refunds could be time-consuming. The pursuit of any refund could take several months—or even years—depending on how the ruling is implemented and how courts interpret its scope.
Broadband and optical industry stakeholders will face the decision of whether to dedicate legal resources and time to secure a refund or to absorb tariff-related losses as the cost of doing business in unprecedented times.
