Trump administration battles to limit billions in tariff refunds after court nullifies tariffs

The U.S. Supreme Court ruled 6‑3 that President Trump lacked authority under the International Emergency Economic Powers Act to impose sweeping global tariffs, wiping out the previous duty structure and opening the door for up to $166 billion in refunds. In response, the administration invoked Section 122 of the Trade Act of 1974, imposing a temporary 10 % global tariff that was later raised to 15 % via a Truth Social post. The new levies have also faced legal challenges, with the Court of International Trade striking down parts of the rates while a stay keeps the 10 % tariff in place.

Separately, the Trump administration is now seeking to limit the repayment of tariff revenues. The Department of Justice argues that the Court of International Trade exceeded its authority by ordering universal refunds to all importers, and officials say refunds will only be made when a court specifically mandates them. A hearing before the court is scheduled, where CBP’s executive assistant commissioner for trade is expected to outline the government’s refund policy. Importers and trade lawyers are preparing further litigation, including potential class‑action suits, while the dispute continues to affect businesses that previously paid the now‑invalidated duties.