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Court mandates refunds for struck-down tariffs
A federal trade judge has directed U.S. Customs and Border Protection to reimburse businesses for tariffs invalidated by the Supreme Court last month. The decision applies to levies imposed under emergency powers by former President Donald Trump.
Legal basis and scope
Judge Richard Eaton of the U.S. Court of International Trade ruled that all importers subjected to the International Emergency Economic Powers Act (IEEPA) duties are entitled to refunds following the high court's decision. The case originated from a lawsuit filed by Tennessee-based Atmus Filtration, though Eaton indicated he will handle all refund-related cases exclusively.
Administration response and new tariffs
Trump, who has criticized the refunds, is moving to replace the invalidated tariffs. Treasury Secretary Scott Bessent announced plans to implement a 15% global tariff this week, increasing the previous 10% rate. The administration had collected approximately $130 billion from the now-defunct IEEPA tariffs.
Business reactions and ongoing disputes
Companies like FedEx have filed lawsuits demanding full refunds. Dan Anthony, representing the small-business coalition We Pay the Tariffs, called the ruling a "victory" and urged prompt reimbursement. The White House has not commented on the court's decision.
"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."
Dan Anthony, We Pay the Tariffs
Uncertainty over future trade policy
The ruling adds complexity to U.S. trade policy, which has seen frequent shifts under Trump. Last April, the administration introduced "Liberation Day" tariffs on multiple countries, with rates ranging from 10% to 50%. These were later struck down by the Supreme Court, along with previous duties on goods from Mexico, Canada, and China.
Next steps
The refund process remains unclear, and the administration has not outlined specific timelines or procedures. Trade negotiations with affected countries continue amid the policy upheaval.
