A US trade court has ruled that businesses that paid certain tariffs under US President Donald Trump are entitled to refunds, after those levies were struck down by the Supreme Court last month, the BBC reported. The decision directs federal authorities to begin returning the money, delivering a major legal setback for the Trump administration’s trade policy.
US trade court clears path for refunds
On Wednesday, the US Court of International Trade ordered Customs and Border Protection to issue refunds for tariffs that President Donald Trump introduced last year under the International Emergency Economic Powers Act (IEEPA).
Judge Richard Eaton wrote, “All importers of record whose entries were subject to IEEPA duties are entitled to the benefit” of the Supreme Court’s ruling, according to a report by the BBC.
That means any company that paid those specific emergency tariffs should now qualify for a refund. The case was brought by Atmus Filtration, a Tennessee-based filtration company. Although it began with one firm’s complaint, Judge Eaton said he will be the only judge handling cases related to these refund claims.
Even with the court’s order, it remains unclear how the refund process will work in practice and how quickly businesses will receive payments. The ruling is a setback for the Trump administration. The president has already taken steps to replace the struck-down tariffs and has expressed frustration over the possibility of refunding the money collected.
The administration had raised an estimated $130 billion (£97 billion) through tariffs imposed on most goods imported into the US under IEEPA.
On the other hand, US Treasury Secretary Scott Bessent said the United States is “likely” to introduce a new 15% global tariff this week, an increase from the earlier 10% rate. The new tariff is intended to replace the IEEPA-based duties that were invalidated by the Supreme Court.
Companies push for full refunds
Several companies, including FedEx, have filed lawsuits seeking full repayment of the tariffs they paid. The White House did not immediately respond to requests for comment on the trade court’s order. The administration has faced increasing pressure from businesses that had already paid the now-invalid tariffs.
However, there is still uncertainty over what US import tax policy will look like going forward. Last April, President Donald Trump announced “Liberation Day” tariffs on dozens of countries, with rates starting at 10% and rising to nearly 50% in some cases.
Those duties triggered a wave of trade negotiations, as countries sought lower rates in exchange for promises of investment and other policy changes.
However, the Supreme Court struck down those tariffs last month, along with earlier measures on goods from Mexico, Canada and China, ruling that the administration had relied on emergency powers to impose them.
With the latest order from the trade court, businesses that paid under those emergency tariffs are now closer to receiving their refunds.