A federal judge has cleared the way for thousands of US businesses to receive refunds for tariffs that the Supreme Court struck down last month. The ruling by the US Court of International Trade comes after a legal challenge to import levies introduced under the International Emergency Economic Powers Act (IEEPA) by former President Donald Trump.
Judge Richard Eaton ruled on Wednesday that Customs and Border Protection must issue refunds for the tariffs. “All importers of record whose entries were subject to IEEPA duties are entitled to the benefit” of the Supreme Court’s decision, Eaton wrote. The ruling stems from a case brought by Tennessee-based Atmus Filtration, but the judge said he will oversee all refund cases related to the tariffs.
The tariffs, imposed last year, covered a broad range of goods imported into the US and generated an estimated $130 billion in revenue. The Supreme Court struck them down last month, along with certain duties aimed at goods from Mexico, Canada, and China, citing overreach of emergency powers.
Treasury Secretary Scott Bessent indicated that the US is likely to introduce a 15% global tariff this week, up from 10%, to replace the levies invalidated by the court. The announcement followed mixed statements from Trump on the new rates.
The decision marks a setback for Trump, who had expressed a desire to maintain import taxes while minimizing refunds. Several companies, including FedEx, had filed lawsuits seeking full reimbursement for tariffs already paid.
Dan Anthony, a representative of the small-business coalition We Pay the Tariffs, welcomed the ruling. “American small businesses have waited long enough. A full, fast, and automatic refund process is what these businesses are owed, and anything less is unacceptable,” he said.
The court ruling comes amid broader uncertainty over US trade policy. Last April, Trump announced “Liberation Day” tariffs on dozens of countries, with rates beginning at 10% and rising to as high as 50% for some goods. The duties triggered extensive trade negotiations, as affected countries sought lower rates in exchange for investments and other concessions.
While the judgment provides clarity for companies seeking reimbursement, questions remain about how the US will structure import taxes moving forward. The White House has not yet commented on the court decision or on the proposed replacement tariffs.
Analysts say the ruling could have significant implications for US trade policy and international business relations. Many firms that paid the now-invalid tariffs are expected to pursue refunds, potentially affecting federal revenue and prompting further adjustments to trade agreements.
With the refund process set to begin, businesses are awaiting guidance from Customs and Border Protection on timelines and procedures, while the new tariffs are expected to reshape the landscape of US imports in the coming months.
