The connected fitness giant is seeking refunds on tariffs it says were unlawfully imposed under emergency powers, joining a growing number of companies like iFIT and Reebok
Peloton and its commercial equipment division, Precor, have sued the federal government in the U.S. Court of International Trade seeking refunds on tariffs they paid.
In the complaint, filed Jan. 7, the connected fitness giant argues the duties were unlawfully imposed under a series of executive orders beginning in early 2025, contending that President Donald Trump relied on the International Emergency Economic Powers Act, authority it says the law does not provide.
Peloton and Precor pointed to recent court rulings that have already found IEEPA cannot be used to impose import duties, citing decisions by the Court of International Trade and the U.S. Court of Appeals for the Federal Circuit.
The suit names U.S. Customs and Border Protection, its commissioner, Rodney S. Scott, and the United States as defendants.
It also comes as the Supreme Court considers the broader legal fight over the tariffs, after hearing oral arguments last November, in consolidated cases challenging the same framework. Notably, connected fitness brand iFIT and Reebok filed similar lawsuits in the Court of International Trade late last year.
Peloton and Precor describe themselves as importers of fitness equipment and related goods that they say cannot be sourced domestically in sufficient quantity or to required technical specifications.
Peloton noted it imports equipment and apparel from countries including China, Taiwan, Thailand and Vietnam, while Precor says it imports equipment from a wider range of countries, including China, Mexico, France, Germany, Japan, South Korea, Sri Lanka and Taiwan.
The complaint identifies “Trafficking Tariffs” imposed in February 2025 on imports from Mexico, Canada and China, and “Reciprocal Tariffs” introduced in April 2025 that added a baseline 10% duty on most imported goods, with higher rates for dozens of countries.
The companies say they have been paying the tariffs since February 2025 and that the payments are “ongoing and continuous.” They note they filed suit now to preserve their ability to seek refunds before additional entries are finalized under customs law.
“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,” the companies wrote.
Peloton and Precor are asking the court to declare the tariffs unlawful, block further enforcement against them and order refunds with interest for amounts already paid.
The Supreme Court is expected to rule on whether President Trump had the legal authority under IEEPA to impose the tariffs before the end of its term, with a decision possibly coming as soon as this week.
As a decision looms, the Trump administration has expressed confidence in its position. Treasury Secretary Scott Bessent told NBC’s Meet the Press on Sunday it is “very unlikely” the Supreme Court will overturn the policy.
“They did not overrule Obamacare; I believe that the Supreme Court does not want to create chaos,” Bessent said.
Beyond fitness equipment, tariffs have also sent ripples through the activewear industry.
Lululemon’s outgoing CEO Calvin McDonald said last year that the “tariff paradigm” had “brought uncertainty into the retail environment.” The athleisure giant also laid off roughly 150 corporate employees and floated modest price increases.
