Trade court orders tariff refunds in setback for Trump administration

A federal judge has cleared the way for thousands of businesses to receive refunds for tariffs that the Supreme Court struck down last month.

The US Court of International Trade on Wednesday ordered Customs and Border Protection to issue refunds for levies US President Donald Trump introduced last year under the International Emergency Economic Powers Act (IEEPA).

“All importers of record whose entries were subject to IEEPA duties are entitled to the benefit” from the high court’s ruling, Judge Richard Eaton wrote.

The payment process remains murky. But the trade court decision marks a setback for Trump, who has moved to replace the import taxes and bemoaned the prospect of refunds.

The ruling was specifically on a case brought by a filtration company in Tennessee, Atmus Filtration, but the judge said he will be the only one to hear cases about refunds.

US Treasury Secretary Scott Bessent said the US was “likely” to implement a 15% global tariff this week, up from 10%, following conflicting statements from President Donald Trump about the new rate. It is intended to replace the IEEPA tariffs struck down by the Supreme Court.

The Trump administration brought in an estimated $130bn (£97bn) from tariffs imposed on most goods imported into the US through IEEPA.

Companies including the global transportation and postal firm FedEx have filed lawsuitsseeking full refunds of the tariffs.

The White House did not immediately respond to a request for comment.

The administration has been facing growing claims from firms who had previously paid the tariffs the Supreme Court struck down.

Dan Anthony, with We Pay the Tariffs, a small-business coalition formed to seek refunds, called the decision a “victory” in a statement.

“American small businesses have waited long enough. A full, fast, and automatic refund process is what these businesses are owed and anything less is unacceptable,” he said.

Significant questions remain about what US import tax policies will look like going forward.

Last April, Trump announced “Liberation Day” tariffs on dozens of countries, with rates starting at 10% and climbing toward 50% in some cases.

The duties kicked off a flurry of trade negotiations as countries pushed to secure lower rates in exchange for promises of investment and other changes.

The US Supreme Court’s judgement struck those down last month, as well as some the administration had previously announced on goods from Mexico, Canada and China, citing emergency powers.

By BBC News