Peloton has filed a lawsuit against the United States government in the U.S. Court of International Trade, challenging the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) by President Trump. The lawsuit, filed on January 7, 2026, seeks to have the tariffs declared unlawful and requests a full refund of all tariffs Peloton has paid.
The tariffs at issue stem from a series of executive orders beginning in early 2025. On January 20, 2025, President Trump declared a national emergency at the southern border, citing threats from drug cartels and human traffickers. This was followed by executive orders in February 2025 imposing tariffs on imports from Mexico (25%), Canada (25%), and China (10%), with the administration citing drug trafficking and the synthetic opioid crisis as justification. In April 2025, the President issued additional “Reciprocal Tariffs” imposing a baseline 10% duty on nearly all imported goods, with higher rates for certain countries. All of these tariffs were imposed under the authority of IEEPA.
The complaint was filed jointly by Peloton Interactive, Inc. and Precor Incorporated, Peloton’s commercial fitness equipment subsidiary. According to the filing, Peloton imports exercise equipment including treadmills, stationary bicycles, rowing machines, elliptical and strength machines, and apparel from multiple countries including China, Taiwan, Thailand, and Vietnam. Precor imports from an even wider range of countries including China, France, Germany, Japan, Mexico, South Korea, Sri Lanka, and Taiwan.
Peloton states in the complaint that it has been paying IEEPA tariffs since February 2025 and that these payments are “ongoing and continuous.” The company notes that some of its entries have already been liquidated (meaning the tariff payments have been finalized), with the earliest liquidation occurring in May 2025 for Precor and June 2025 for Peloton.
The defendant in the lawsuit is the United States Customs and Border Protection Agency. CBP is the agency that actually collects tariffs and duties on imports, so would be the ones who collect (and would refund) money from tariffs.
The lawsuit is part of a broader wave of legal action from importers seeking to preserve their right to tariff refunds. Several lower courts have already ruled that the IEEPA does not authorize the tariffs. The U.S. Court of International Trade and the Court of Appeals for the Federal Circuit have both ruled that IEEPA does not authorize the President to impose tariffs.
These rulings are now being appealed to the Supreme Court. The Supreme Court heard oral arguments in the consolidated cases (V.O.S. Selections and Learning Resources) on November 5, 2025, and a decision is expected by June 2026.
However, companies that have paid tariffs are not automatically guaranteed refunds even if the Supreme Court rules the tariffs unlawful. By filing suit now, Peloton is positioning itself to receive refunds on tariffs it has already paid if the courts ultimately strike down the tariffs. As Peloton states in the complaint: “Even if the Supreme Court holds the tariffs at issue to be unlawful, that will not necessarily ensure a remedy for importers such as Plaintiffs who will have paid significant tariffs unlawfully collected by the government.”
Peloton is far from alone in this legal action. According to Forbes, more than 75 companies have filed similar complaints, which have been consolidated into a single case. Other companies that have filed include Costco, Revlon, Kawasaki Motors, Bumble Bee Foods, EssilorLuxottica (which owns Ray-Ban), and fitness equipment manufacturer iFit.
In its complaint, Peloton requests that the court declare the IEEPA tariffs unlawful, issue an injunction preventing the government from imposing further IEEPA tariffs on Peloton, order a full refund with interest of all tariffs Peloton has paid, and order reliquidation of previously liquidated entries if necessary.
This isn’t the first time Peloton has taken legal action over tariffs. Back in September 2020, Peloton filed a similar lawsuit challenging Section 301 tariffs that were imposed as part of the trade war with China. At that time, Peloton stated it had paid more than $3.9 million in tariffs. That lawsuit, like the current one, was part of a wave of hundreds of companies challenging the legality of certain tariff lists.
The case is PELOTON INTERACTIVE, INC. and PRECOR INCORPORATED vs UNITED STATES CUSTOMS AND BORDER PROTECTION, with a case #1:26-cv-00135-N/A.
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