By Blessing Nweke
A federal trade court has ordered the U.S. government to refund tariffs collected under an emergency powers law, marking a significant setback for the administration of Donald Trump after the duties were struck down by the Supreme Court of the United States last month.
The ruling by the United States Court of International Trade on Wednesday directs U.S. Customs and Border Protection to begin issuing refunds to businesses that paid the tariffs introduced under the International Emergency Economic Powers Act (IEEPA).
Judge Richard Eaton wrote in the order that “all importers of record whose entries were subject to IEEPA duties are entitled to the benefit” of the Supreme Court’s decision invalidating the tariffs. The decision stems from a case filed by Tennessee-based filtration company Atmus Filtration Technologies, though the judge indicated he will oversee all related refund claims.
The tariffs, imposed last year under Trump’s emergency authority, generated an estimated $130 billion for the federal government on goods imported into the United States. Major companies, including logistics giant FedEx, have filed lawsuits seeking reimbursement of the levies.
The exact process for distributing refunds remains unclear, raising concerns among thousands of businesses that paid the duties.
Treasury Secretary Scott Bessent said the administration is likely to introduce a new 15% global tariff this week to replace the invalidated taxes, an increase from the previously discussed 10% rate.
Business groups welcomed the court’s decision. Dan Anthony of the small-business coalition We Pay the Tariffs called the ruling a “victory,” urging officials to ensure a full and automatic refund process.
The legal fight highlights ongoing uncertainty around U.S. trade policy after Trump’s sweeping “Liberation Day” tariffs on dozens of countries were struck down, prompting new negotiations and raising questions about future import tax strategies.
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