US Supreme Court Ruling Sparks Concern Over Tariff Refund Delays

US Supreme Court Ruling Leaves Refund Process Uncertain for Tariffs

The US Supreme Court has issued a ruling that upholds a lower court decision finding President Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA) exceeded his authority. The 6-3 decision was announced on Friday, with Chief Justice John Roberts presiding.

As a result of the tariffs imposed under IEEPA, an estimated $175 billion has been collected by the federal government over several months. However, the court did not specify how this amount would be refunded to affected parties.

More than 1,000 lawsuits have already been filed in the Court of International Trade seeking refunds for importers who were impacted by the tariffs. Legal experts predict that the administration will require importers to apply for refunds individually, which could disproportionately burden smaller businesses.

Greg Shaffer, a law professor at Georgetown University, stated that the government is unlikely to voluntarily pay back the money it unlawfully collected. Instead, the administration plans to implement procedures for importers to request refunds through formal protests, which may delay the process and incur additional costs.

The ruling does not affect other sweeping levies currently in place, including tariffs imposed under Section 232 of the 1962 Trade Expansion Act. President Trump has announced plans to impose a new 10% global tariff for 150 days, which will be made under Section 122 of the Trade Act of 1974.

The administration also has other legal avenues available to continue taxing imports aggressively. Wendy Cutler, vice president of the Asia Society Policy Institute, noted that trading partners were aware of the risks associated with using IEEPA and chose to conclude deals with Washington despite these concerns.

Source: Al Jazeera