Nongshim's U.S. subsidiary has filed a tariff refund lawsuit against the U.S. government. Attention is also focused on how domestic food companies, such as Samyang Foods, CJ CheilJedang, and Daesang—which have been expanding their business in the U.S. market—will respond to tariff refund claims.
According to industry sources on the 2nd, Nongshim's U.S. subsidiary filed the lawsuit last month (28th, local time) at the U.S. Court of International Trade (CIT) against the U.S. government and U.S. Customs and Border Protection (CBP). The lawsuit seeks the return of tariffs paid under the International Emergency Economic Powers Act (IEEPA) along with interest. It is also reported that the company has requested a recalculation for imported goods with already finalized tariff amounts.
The Trump administration had declared the U.S. trade deficit a national emergency in April last year and imposed reciprocal tariffs on trading partners under IEEPA. However, the U.S. Supreme Court ruled on February 20th that the law does not grant the president authority to impose tariffs.
CBP has since established a separate system to process refunds. As of the 23rd of last month, approximately $137.9 billion was submitted for processing, of which about $127.7 billion, including interest, has been confirmed for refund and requested for payment from the Treasury.
However, imports with finalized tariff amounts that have passed a certain period require additional procedures for refunds. While CBP began accepting refund applications for imports that passed 80 days after tariff finalization from the 6th of last month, it initially limited eligibility to importers who filed individual lawsuits and received court-ordered recalculations.
Despite the ruling that tariff imposition was unlawful, companies are now forced to file separate lawsuits to recover paid tariffs. In response, the court approved a class-action lawsuit on the 8th of last month for importers who did not file individual lawsuits. However, the approval of the class-action itself does not mandate refunds.
The impact on domestic food companies is difficult to assess based solely on U.S. sales volume. This is because each company's production location, import structure, actual tariff payer, and refund progress for products sold in the U.S. vary. Even if a company has local production facilities, it may still be subject to refund review if it paid tariffs on imported finished products or raw materials.
Major food companies operating in the U.S. also differ in their production and sales methods. Samyang Foods' U.S. sales subsidiary, Samyang America, purchases domestic-produced products and goods from the headquarters and sells them to local wholesalers and large retail channels. CJ CheilJedang has been expanding its local production infrastructure and distribution network in the U.S., centered around Bibigo. Daesang added locally produced products to its existing exports by operating a kimchi factory near Los Angeles in 2022.
A food industry official stated, “Each company has different circumstances regarding when and how much they imported, how much tariff they paid, and how much remains unrefunded.” The official added, “Since companies that have already smoothly received refunds are in a different situation, it is necessary to check each company's status rather than viewing one company's lawsuit as reflecting the entire industry's situation.”
