US Tariff Update: Court Signals Refunds While New Duties Challenged

While developments in the Middle East have rightly grabbed most of the headlines recently, the situation around US tariffs has been steadily intensifying over the past week or two.

The escalation follows a ruling by the US Supreme Court against Donald Trump’s “Liberty Day” tariffs, prompting both legal disputes and new policy responses from the administration.

Tariff Refund Latest

The US Court of International Trade ordered US Customs and Border Protection (CBP) last week to issue tariff refunds following a case brought by a single plaintiff. Although the judgment formally applies only to the Tennessee-based company that filed the challenge, the judge made clear that the implications were far broader.

In the ruling, the court concluded that “all importers of record whose entries were subject to IEEPA duties are entitled to the benefit.”

In response, CBP said it is not currently able to comply with the order. However, the agency indicated that by revamping its technology systems it could potentially begin issuing refunds on an importer-by-importer basis by late April.

The scale of the task is considerable. CBP said its systems would need to be adjusted to account for more than 330,000 importers and approximately 53 million entries that had paid tariffs under the International Emergency Economic Powers Act (IEEPA).

Despite this, the refund process still remains uncertain. Government lawyers have signalled that they may challenge the order, raising the possibility of further legal delays before any repayments are made.

Legal Challenge On New Tariffs

Immediately following the US Supreme Court ruling, Donald Trump introduced a new 10% global tariff, making use of an alternative rule that allows the president to impose temporary tariffs for up to 150 days before seeking approval from Congress.

US Treasury Secretary Scott Bessent said last week that the rate is “likely” to rise to 15% in the near future — the maximum permitted under the rule.

However, the move has already triggered another legal challenge. A coalition of 22 US states, led by Democratic administrations, has filed a lawsuit seeking to block the new tariff introduced under Section 122 of the Trade Act of 1974.

The states argue that the administration’s use of Section 122 is also unlawful, contending that the provision was not intended to address trade imbalances in the way it is currently being used.

The White House has rejected those claims and says the policy is well within the law. Officials have stated that the administration will “vigorously” defend the tariffs in court, setting the stage for another potentially significant legal battle over US trade policy.

To coin and old movie phrase – “Just when you thought it was safe to go back in the water…”