US President Donald Trump’s tariff policy has suffered another major setback, with his administration reportedly refunding nearly USD 100 billion collected through tariffs that were later struck down by the US Supreme Court.
Trump began imposing reciprocal tariffs on several countries in April last year, triggering tensions with major trading partners and raising fears of a wider global trade war. However, legal challenges to some of these duties eventually reached the SC, which ruled against a major part of the tariff programme.
Supreme Court Struck Down IEEPA Tariffs
The dispute centred on tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The SC ruled that a significant portion of the duties imposed using the law was unlawful.
The ruling not only invalidated the tariffs but also paved the way for businesses that had paid them to receive refunds.
According to the latest reports, the Trump administration has now returned nearly $100 billion collected through the affected tariffs.
Nearly $100 Billion Refund Process Completed
US customs officials provided details about the tariff refunds in a court filing. The filing said the administration had processed refunds worth approximately $100 billion following the Supreme Court decision that invalidated tariffs imposed by Trump under IEEPA.
A filing with the US Court of International Trade said the refund process, including applicable interest, had been completed through the government’s customs refund system. The money was then sent to the Treasury Department for distribution.
Refunds Account for Major Share of Affected Tariffs
The nearly $100 billion being refunded represents more than half of around $166 billion in tariffs that were affected by the SC’s decision earlier this year. In a landmark 6-3 ruling on February 20, the court found that Trump had exceeded his authority by using a 1977 law designed to deal with national emergencies to impose sweeping tariffs on imports from US trading partners.
The judges concluded that the law did not give the president unilateral authority to impose such broad trade duties.
Trump’s Tariff Policy Faces Fresh Political Row
While the administration has begun returning the tariff money, the refund process itself has now become a fresh political issue in the US. Critics argue that the refunds are being paid to importers and companies that directly paid the tariffs rather than American consumers who may have faced higher prices as businesses passed on some of the additional costs.
The controversy has renewed debate over Trump’s tariff strategy and its impact on US businesses, consumers and international trade.
Tariff Battle Could Have Wider Economic Impact
Trump has repeatedly used tariffs as a key part of his trade policy, arguing that higher duties can protect American industries and push trading partners towards more favourable agreements.
However, the SC ruling and the large-scale refunds underline the legal and financial risks surrounding the use of emergency powers to impose sweeping trade restrictions.
With nearly $100 billion reportedly being returned, the tariff dispute is now not only a legal setback for Trump but also a significant financial issue for the US government.
