Exercise equipment maker Peloton has filed a lawsuit against the US government over tariffs imposed by President Donald Trump. The company, along with its commercial arm Precor, is seeking a refund of tariffs paid on goods imported from China, Mexico, and other countries affected by the levies.
The tariffs, announced by Trump after his return to the White House, include a 25 percent duty on imports from Mexico and Canada and an additional 10 percent on Chinese goods. In April, a baseline 10 percent tariff on all countries was introduced, with some facing higher rates. The US and China later reduced a 145 percent levy on Chinese goods to 30 percent.
Peloton and Precor argue in their complaint that Trump lacked authority under the International Emergency Economic Powers Act (IEEPA) of 1977 to impose such tariffs. The White House had invoked the IEEPA, citing a national emergency due to the trade deficit, undocumented migration, and illegal drugs.
The Supreme Court is currently considering whether Trump's tariffs were lawful under the IEEPA. Peloton's lawsuit notes that even if the court rules against the tariffs, refunds are not guaranteed. Over 1,000 companies have sued for refunds after a November 2025 Supreme Court hearing where justices appeared skeptical of the tariffs.
The Justice Department declined to comment on the lawsuit. The outcome of the case could set a precedent for other businesses seeking tariff refunds.
