A loss in Trump’s tariff case could force the U.S. to repay businesses more than $200 billion.

 Most of the sweeping tariffs President Donald Trump imposed during his second term now face a critical legal test that could determine not only whether they remain in effect but also whether U.S. businesses are entitled to substantial refunds.

The development follows a federal appeals court ruling on Friday that Trump had exceeded his authority under the International Emergency Economic Powers Act (IEEPA) in imposing broad-based duties. Under these powers, he had set import taxes as high as 50% on goods from India and Brazil, and up to 145% on Chinese imports earlier this year.

President Donald Trump attends an event in the Oval Office at the White House, September 2.

As of August 24, American businesses had paid more than $210 billion to cover tariffs that courts have deemed illegal. On Tuesday, Trump acknowledged that if the Supreme Court upholds the appeals court’s decision, the U.S. Treasury could be required to return the collected revenue.

Trump told reporters that his administration is preparing an appeal to the Supreme Court, possibly as soon as Wednesday, and is pushing for swift action to keep the tariffs in place beyond the October 14 deadline set by the appeals court.