Zespri sues the US over IEEPA tariff refund

New Zealand kiwifruit giant Zespri has filed a suit against the US government over wrongfully imposed tariffs paid by the company in 2025 amounting to over $23.5 million (NZ$40 million). 

According to local news outlet Economic News, 90 percent of the company’s US sales last year were taxed first at 10 percent and then at 15 percent by the Trump Administration’s first set of tariffs imposed under the International Economic Emergency Protections Act (IEEPA). 

In an interview with New Zealand’s Farmers Weekly, Zespri CEO Te Brake said some of the tariff burden was passed on to consumers through higher retail prices. However, having invested big in marketing and promotion to gain shelf space at chains like Costco and Walmart, the firm couldn’t let Americans take the whole brunt of tariffs. 

“Kiwifruit are quite a high-priced item [in the US], and we felt we could pass on a portion of [the tariff] but not the full amount without slowing down consumption,” he explained. “Some of it has been worn by our growers back in NZ.” 

Zespri enjoys a favorable position

The first batch of tariffs imposed by the Trump Administration, IEEPA tariffs were struck down by the US Supreme Court back in February 2026, in a 6-to-3 decision President Donald Trump labeled as “disgraceful.” 

The ruling triggered a long and complicated process to refund up to $170 billion in levies wrongfully collected by the US since April 2025. To date, only 60 percent has been returned to importers, according to the Tax Foundation. 

As tariffs are paid to US Customs and Border Protection (CBP) upon entry to the country, only the importers bringing goods stateside are eligible for refunds. This leaves international producers and distributors out of the system, as any payments depend solely on contracts and goodwill from their US partners. 

For Zespri, though, this is not a problem, as the company maintains its own operation in the United States and is officially an importer of record. Under this structure, the firm is eligible for a direct tariff refund, which, in case the suit is successful, Te Brake says will be received by Zespri US and passed on to producers back home through grower payments.  

The refund timeline is unclear, so it’s uncertain whether Zespri will see its money back this year. To date, there are still around $70 billion that the CBP has to pay back to importers.

*All images courtesy of Zespri.

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