Tariff Refunds Ordered After Supreme Court Decision

Federal Judge Richard Eaton of the U.S. Court of International Trade has ruled that importers are entitled to refunds related to tariffs deemed unlawful by the Supreme Court. The ruling clarifies aspects of establishing a refund process, a detail not addressed in the Supreme Court’s initial decision.

More than $130 billion was collected through tariffs impacted by the ruling, as of mid-December 2023. The Court of International Trade’s decision followed a recent rejection by the U.S. Court of Appeals for the Federal Circuit of an attempt by the Trump Administration’s Justice Department to delay the refund process.

Tariff Refund Eligibility

Judge Eaton’s ruling stems from the Supreme Court’s invalidation of tariffs imposed under the International Emergency Economic Powers Act (IEEEPA). The court determined that importers are now eligible for refunds of these tariffs.

Government Response and Timeline

The U.S. Court of Appeals for the Federal Circuit recently denied a request from the Trump Administration’s Justice Department to slow down the process of issuing refunds. This decision allows the refund process to move forward without further delay.

Reaction from Small Businesses

We Pay the Tariffs, a coalition representing over 1,000 small businesses, expressed strong support for the court’s decision. The organization stated that the ruling is a victory for businesses that have paid billions in unlawful tariffs and are now due refunds. They urged the government to implement a swift and automatic refund process, expressing concern that further delays would be detrimental to small businesses.