A United States trade court has directed federal authorities to begin refunding billions of dollars in tariffs collected under emergency trade measures imposed by US President Donald Trump. The ruling follows a Supreme Court decision last month that struck down those levies, opening the door for businesses to reclaim payments that were collected under the now‑invalid policy.
According to a report by the BBC, the decision could lead to refunds worth up to $130 billion, marking one of the most significant legal challenges yet to the tariff framework introduced by the Trump administration.
Court Clears Path For Importers To Receive Refunds
The order was issued by the US Court of International Trade, which directed Customs and Border Protection to start processing refunds for companies that paid tariffs imposed under the International Emergency Economic Powers Act (IEEPA), reported The Financial Express.
Judge Richard Eaton wrote that companies affected by the duties are entitled to relief following the Supreme Court’s earlier ruling.
“All importers of record whose entries were subject to IEEPA duties are entitled to the benefit” of the Supreme Court decision, Judge Eaton stated, according to the BBC.
The ruling means that businesses which paid those emergency tariffs can now seek reimbursement from the federal government.
Although the case began with a complaint filed by Atmus Filtration, a Tennessee‑based filtration company, the implications extend far beyond a single business. Judge Eaton indicated that he will oversee all cases connected to these tariff refund claims.
Tariffs Were Introduced Under Emergency Powers
The tariffs in question were imposed last year by President Donald Trump using the International Emergency Economic Powers Act. The law allows the US president to take economic action in response to national emergencies, including restrictions or penalties affecting trade.
However, the Supreme Court ruled last month that the administration’s reliance on those emergency powers to impose import tariffs was not legally justified.
The decision invalidated the duties applied under the measure, which had covered a broad range of goods entering the United States.
According to estimates cited in the BBC report, the tariffs had generated approximately $130 billion (£97 billion) in revenue for the US government before they were struck down.
With the court now ordering refunds, businesses that paid those duties are expected to seek reimbursement of those funds.
Questions Remain Over Refund Process
Despite the ruling, the practical details of how the refunds will be processed remain unclear.
The court’s order instructs Customs and Border Protection to begin issuing refunds, but it does not yet specify how quickly payments will be made or how the administrative process will be handled.
Large numbers of companies across multiple industries may file claims, potentially making the refund process complex and time‑consuming.
Businesses File Lawsuits Seeking Repayment
Several companies have already begun legal action to recover the tariffs they paid.
Among them is FedEx, which is pursuing litigation seeking full repayment of the duties collected under the now‑invalid measures.
Businesses have argued that they should not be required to absorb the costs of tariffs that courts later ruled were imposed without proper legal authority.
The latest decision from the trade court strengthens their position by formally directing authorities to begin the refund process.
Administration Considers New Global Tariff
While the ruling represents a legal setback for the Trump administration, officials have indicated that new tariff measures may soon be introduced.
According to US Treasury Secretary Scott Bessent, the United States is “likely” to impose a new global tariff of 15 per cent later this week. The proposed levy would replace the earlier duties imposed under the emergency powers that were invalidated by the courts.
The planned tariff would represent an increase from the previous 10 per cent rate and could form part of a broader restructuring of US import taxes.
Background: The “Liberation Day” Tariffs
The now‑invalid tariffs were part of a broader trade strategy announced by President Trump last April, when he introduced a series of duties that he described as “Liberation Day” tariffs.
Those tariffs targeted imports from dozens of countries, with rates starting at 10 per cent and in some cases rising to nearly 50 per cent.
The measures triggered extensive negotiations with trading partners as governments sought lower tariff rates in exchange for policy changes or investment commitments.
However, the Supreme Court later struck down both the Liberation Day tariffs and earlier duties imposed on goods from Mexico, Canada and China, ruling that the administration had relied improperly on emergency powers to enforce them.
