Trump Administration Refunds $100 Billion in Tariffs After Supreme Court Ruling

The administration of former U.S. President Donald Trump has initiated refunds totaling approximately $100 billion (RM408 billion) following a U.S. Supreme Court decision that deemed the use of emergency powers to impose tariffs unlawful. This move impacts duties levied on dozens of trading partners.

According to U.S. Customs and Border Protection (CBP) filings on Tuesday, the agency has already returned more than three-quarters of the $128.68 billion (RM526 billion) identified for potential and certified refunds. Brandon Lord, Executive Director of CBP's Trade Policy and Programs Directorate, stated in the court filing that CBP's financial accounting system is processing these certified repayments in stages.

The Supreme Court's ruling in February found that Trump had exceeded his authority by using the International Emergency Economic Powers Act of 1977 to impose tariffs, notably on synthetic opioid fentanyl, targeting Canada, Mexico, and China. This decision also affected broader retaliatory tariffs applied to over 90 countries.

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CBP's financial accounting system is receiving updates from the Treasury showing that refunds certified by the department are being disbursed in stages.

Trump had publicly criticized the ruling, labeling the six justices who ruled against his administration as "fools" and "puppets" of the Democratic Party. However, the court's decision did not revoke tariffs imposed on specific sectors under the Trade Expansion Act of 1962, meaning duties on imports such as steel, vehicles, and copper remain in effect. Consequently, the U.S. Court of International Trade ruled in March that companies affected by the invalidated tariffs were eligible for refunds.

Despite the court's decision, Trump's administration continued to introduce new tariffs. Just last month, his administration announced tariffs ranging from 10% to 12.5% on imports from numerous countries accused of failing to adequately combat forced labor practices. A coalition of 25 U.S. states has filed a lawsuit challenging these latest tariffs, arguing they serve as a pretext to reimpose duties previously struck down by the Supreme Court.

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Trump had condemned the decision and labeled the six judges who ruled against him as 'fools and puppets' of the Democratic Party.