The U.S. customs agency confirmed that more than $100 billion in tariffs has been refunded to importers following the Supreme Court’s February decision that invalidated key parts of Donald Trump’s trade war strategy. The court ruled that the president overstepped by using the 1977 International Emergency Economic Powers Act to justify steep import duties on dozens of nations. Customs and Border Protection disclosed that these refunds are part of a broad effort to return funds collected in violation of the court’s ruling.
Over 75% of that amount had already been returned by late May, according to the Court of International Trade. Brandon Lord, a senior CBP official, said in a filing that payments are being made regularly through the Treasury's financial system. The U.S. Treasury tracks the refunds through its financial accounting framework, ensuring that eligible importers receive the money as quickly as possible.
What the Supreme Court Ruled
The justices invalidated tariffs Trump imposed using the International Emergency Economic Powers Act on countries like Canada, Mexico, and China over the fentanyl crisis. The ruling left in place duties on specific sectors under the 1962 Trade Expansion Act, including steel, copper and autos. The decision angered Trump, who called the majority of the justices “fools” and “lapdogs” for the Democratic Party. His response highlighted the deep tensions between the executive branch and the judiciary over trade policy.
The Court of International Trade followed the high court’s lead in March, ordering refunds for affected companies. Despite the ruling, the Trump administration has continued imposing new tariffs, most recently on 10-12.5% levies on products from 25 countries accused of failing to combat forced labor. Officials framed the new measures as targeting human rights concerns, though critics have viewed them as an effort to bypass legal constraints.
On Monday, 25 U.S. states led by New York and California filed a lawsuit challenging the latest tariffs. They argue that the new measures are a cover to reapply the duties the Supreme Court struck down. The states claim these levies are not justified under trade laws and are politically motivated. This legal battle could further complicate Trump’s trade agenda in his remaining time in office.