Author: Marcos Ferreira

U.S. tariff policy remains at the center of international trade discussions in 2026. After the U.S. Supreme Court ruled that part of the tariffs imposed by President Donald Trump’s administration under the International Emergency Economic Powers Act (IEEPA) were unlawful, the U.S. government has already refunded approximately $81 billion to companies that had paid surtaxes on imported goods.

In addition to representing one of the largest tax refunds in recent U.S. history, the case creates new challenges for companies that import, export, or maintain international operations. For organizations with a presence in the U.S. market, the current environment requires close attention to regulatory changes, tax implications, and strategic planning opportunities.

What Led to the Tariff Refunds?

In April 2025, the U.S. government announced a broad package of tariffs on imports from several trading partners, justifying the measure under the International Emergency Economic Powers Act (IEEPA), a law enacted in 1977 that grants the President emergency powers during national emergencies.

However, in February 2026, the U.S. Supreme Court concluded that the IEEPA did not provide the authority to establish this tariff regime. As a result, the federal government was required to begin reimbursing importers for the tariffs that had been unlawfully collected.

According to the U.S. Department of the Treasury, between the beginning of fiscal year 2026 (October 2025) and July 2026, approximately $81 billion had already been refunded to eligible companies, with the largest payments occurring between May and June.

The Impact on U.S. Public Finances

The refunds had an immediate effect on federal finances.

In June 2026 alone:

• The U.S. government collected approximately $23.6 billion in tariff revenue;
• Refunded approximately $49.2 billion to importers;
• Recorded a net outflow of $25.6 billion related to tariffs.

This contributed to a monthly federal budget deficit of approximately $120 billion, while the cumulative fiscal year deficit reached roughly $1.367 trillion. Beyond the refunds themselves, rising interest payments on the national debt also continued to pressure the federal budget.

Is the Matter Settled? Not Yet.

Although the Supreme Court invalidated tariffs imposed under the IEEPA, this does not mark the end of U.S. tariff policy.

Following the Court’s decision, the administration began relying on other legal authorities available under U.S. trade law, including Section 122 of the Trade Act of 1974, to temporarily maintain certain tariffs while developing new trade strategies. At the same time, the administration continues to conduct investigations that may lead to additional tariffs targeting specific countries and industries.

In practice, this means the regulatory environment remains highly dynamic, requiring companies engaged in international business to continuously monitor developments.

Which Companies May Be Affected?

The issue extends well beyond U.S. importers.

Foreign companies with subsidiaries, distribution centers, or commercial operations in the United States may also face significant impacts, particularly if they:

• Import goods directly into the U.S. market;
• Rely on global supply chains;
• Operate under international supply agreements;
• Maintain tax structures involving multiple jurisdictions.

In many cases, businesses may need to reassess contracts, logistics costs, pricing strategies, and tax planning to reflect the evolving regulatory landscape.

Opportunities for International Businesses

Despite the legal uncertainty created by frequent policy changes, the current environment also presents valuable opportunities.

Tax Structure Review

Companies can reassess their corporate and tax structures to identify efficiencies under the new regulatory framework.

Recovery of Previously Paid Tariffs

Organizations that paid tariffs later deemed unlawful should determine whether they qualify for refunds and identify the administrative procedures required to recover those amounts.

Import Planning

With the possibility of future tariff changes, businesses should carefully evaluate product sourcing, applicable trade agreements, and tariff classifications.

Regulatory Risk Management

The case underscores the importance of continuously monitoring legislative developments, judicial decisions, and U.S. trade policy changes.

What Should Companies Do Now?

Regardless of industry, companies with international operations should consider taking the following proactive measures:

• Review their import and export supply chains;
• Confirm whether they paid tariffs that were subsequently ruled unlawful;
• Evaluate opportunities to recover overpaid amounts;
• Update financial forecasts to account for potential tariff changes;
• Review international contracts to address future regulatory developments;
• Strengthen tax and customs compliance programs.

An integrated approach involving legal, tax, accounting, and international trade professionals can significantly reduce risk while improving an organization’s ability to adapt to an increasingly dynamic regulatory environment.

What to Expect in the Coming Months

Experts estimate that total tariff refunds could eventually exceed $175 billion if all eligible claims are processed. At the same time, the U.S. administration continues to pursue alternative legal mechanisms to preserve trade protection measures, suggesting that additional regulatory and judicial disputes may still emerge.

For global companies, this means U.S. trade policy will remain a strategic risk management issue requiring continuous monitoring and long-term planning.

Conclusion

The refund of $81 billion in tariffs represents a landmark moment in U.S. trade policy and demonstrates how judicial decisions can dramatically reshape the business environment.

For companies operating internationally, this case reinforces the importance of maintaining corporate and tax structures capable of responding quickly to regulatory changes, reducing risk while taking advantage of opportunities to recover credits and improve operational efficiency.

Drummond Advisors closely monitors legislative, tax, and trade developments in the United States, helping global companies structure operations, review tax strategies, maintain international compliance, and expand successfully into the U.S. market.

Do you believe your company may be eligible for a tariff refund? Contact our team through the chat available on our website or email us at info@drummondadvisors.com.

Written by Marcos Ferreira, Content Analyst at Drummond Advisors.

Sources

• Reuters – Tariff refunds push US June budget deficit to $120 billion
• Thomson Reuters Institute – Supreme Court’s tariff decision: What’s next for businesses and how to plan
• Penn Wharton Budget Model (estimate cited by Reuters)
• U.S. Department of the Treasury – Monthly Treasury Statement
• Globo – Após derrota na Suprema Corte, governo Trump já devolveu US$ 81 bilhões em tarifas

Expanding to the United States is a strategic move for startups, technology companies, traditional businesses, and international groups seeking access to the world’s largest consumer market, as well as investors, business partners, and global growth opportunities.

However, one of the first decisions an international entrepreneur must make is: which business structure should they choose?

Among the most popular options are the Limited Liability Company (LLC) and the C-Corporation (C-Corp). While both offer liability protection and allow businesses to operate legally in the United States, they differ significantly in terms of taxation, governance, fundraising, and international planning.

In this article, we explain the key characteristics of each structure and the factors global founders should consider before expanding their operations into the U.S.

Why Is Choosing the Right Business Structure So Important?

The entity you choose directly impacts:

• How the company is taxed
• Compliance and governance requirements
• Investor participation
• Fundraising opportunities
• Profit distribution
• International tax planning
• Future mergers, acquisitions, and investment rounds

Choosing the wrong structure can create unnecessary costs, regulatory challenges, and even limit future growth opportunities.

What Is an LLC?

A Limited Liability Company (LLC) is one of the most commonly used business structures in the United States, particularly among small businesses, consulting firms, holding companies, and independent entrepreneurs.

Its main characteristic is that it combines the liability protection of a corporation with the operational flexibility of a partnership.

Key Advantages of an LLC

Tax Flexibility

An LLC may elect different tax treatments depending on the company’s strategy and the tax residency of its members.

In many cases, taxation flows directly to the members (owners), avoiding taxation at the corporate level.

Reduced Administrative Formalities

Compared to a corporation, an LLC typically requires fewer formal meetings, fewer corporate records, and less administrative bureaucracy.

Liability Protection

LLC members are generally not personally liable for the company’s debts and obligations.

Lower Startup and Maintenance Costs

Forming and maintaining an LLC is often simpler and more cost-effective.

What Are the Limitations of an LLC for International Founders?

Despite its advantages, an LLC is not always the best choice for businesses with global ambitions.

Some common challenges include:

• Less familiarity among institutional investors
• Potential tax complexities for foreign owners
• Limitations in certain Venture Capital structures
• Reduced attractiveness for large-scale fundraising rounds

Companies planning to raise capital from U.S. investment funds often find themselves converting to a corporate structure later.

What Is a C-Corporation?

A C-Corporation (C-Corp) is a legal entity separate from its shareholders.

It has its own legal identity, pays corporate income taxes, and is widely used by high-growth startups, technology companies, and businesses seeking outside investment.

Most Venture Capital-backed startups in the United States are structured as C-Corps, particularly in the state of Delaware.

Key Advantages of a C-Corporation

Easier Access to Investment Capital

Venture Capital funds, angel investors, and private equity firms generally prefer investing in C-Corporations.

This preference is driven by:

• Standardized corporate governance
• Simplified share issuance
• Easier implementation of stock option plans
• Well-established corporate law frameworks

Scalability

The C-Corp structure was designed for rapid growth.

It facilitates:

• Investment rounds
• Admission of new shareholders
• Mergers and acquisitions
• International expansion

Stronger Market Perception

Many multinational companies, investors, and business partners are more familiar with the traditional U.S. corporate structure.

LLC or C-Corp: Which Structure Makes More Sense for Global Founders?

The answer depends on your business objectives.

An LLC May Be More Appropriate When:

• The focus is operational efficiency rather than fundraising
• There are only a few owners
• The goal is to maintain a simple structure
• Tax flexibility is a priority

A C-Corp May Be More Appropriate When:

• The company plans to raise Venture Capital
• Rapid growth is a priority
• There is potential for future M&A transactions or an IPO
• The business wants to build a scalable structure from the beginning

International Tax Considerations That Cannot Be Ignored

Foreign businesses must evaluate not only U.S. tax laws but also the consequences in their home jurisdictions.

Important issues include:

• Controlled Foreign Corporation (CFC) rules
• International tax treaties
• Dividend taxation
• Double taxation mitigation
• Transfer pricing regulations
• International holding company structures

These factors should be analyzed before forming a U.S. entity.

A structure that is efficient from a U.S. perspective may create unexpected tax consequences elsewhere if not properly planned.

Common Mistakes Made by International Founders

Some of the most frequent mistakes include:

• Choosing an LLC simply because it is less expensive
• Forming a company without evaluating global tax implications
• Ignoring state and federal compliance requirements
• Failing to align the corporate structure with fundraising goals
• Delaying international tax planning until after expansion

Correcting these decisions later is often significantly more expensive and complex.

How to Make the Right Decision

The choice between an LLC and a C-Corp should take into account:

• Business model
• Growth strategy
• Need for external investment
• Shareholders’ country of residence
• International tax planning considerations
• Long-term business objectives

There is no universally superior structure. There is only the structure that best fits a company’s specific stage and strategic goals.

Conclusion

Expanding into the United States opens the door to growth, capital access, and global opportunities. However, selecting the right business structure is one of the most important decisions in that process.

While an LLC offers flexibility and operational simplicity, a C-Corporation is generally the preferred option for companies seeking investment capital and accelerated growth.

Before forming a U.S. entity, it is essential to evaluate the legal, tax, and strategic implications of the decision.

Drummond Advisors assists founders, startups, and international companies with the structuring of U.S. operations, providing integrated support in corporate, tax, accounting, and compliance matters to ensure a secure expansion aligned with global business objectives.

Need assistance? Contact us through our online chat or by email at info@drummondadvisors.com.

Written by Marcos Ferreira, Content Analyst at Drummond Advisors