A U.S. trade court has ordered the federal government to begin issuing refunds for tariffs that were previously ruled unlawful, marking a significant setback for the Trump administration’s trade policy.
The U.S. Court of International Trade directed officials to establish a process to return duties collected under the emergency tariff program after the Supreme Court upheld a decision finding the levies exceeded presidential authority.
The ruling opened the door for companies that paid the tariffs to reclaim billions of dollars.
The case was initially brought by a group of small businesses, including importers affected by the duties. The court said the tariffs had been imposed without proper legal authority and must therefore be refunded.
Businesses across the country have begun filing claims to recover the money they paid. Some large companies have also launched lawsuits seeking full reimbursement of the duties.
Government lawyers had argued that issuing refunds quickly could create administrative complications and urged the court to allow more time to determine how the process should work. However, the court ruled that affected businesses are entitled to recover the funds collected under the invalid tariffs.
The decision is expected to trigger a large number of refund claims as companies seek repayment for import taxes imposed during the disputed trade measures.
