US Supreme Court Strikes Down Trump’s Tariffs, Leaves $133 Billion Refund Question

The United States Supreme Court struck down President Donald Trump’s tariffs in a 6 to 3 ruling on Friday, declaring he lacked the authority to use emergency powers to impose taxes on imports from nearly every country in the world.

Two of the three justices Trump appointed joined the majority in overturning the tariffs, which represented the first major piece of his second-term agenda to reach the high court.

The court ruled Trump could not use the 1977 International Emergency Economic Powers Act to impose the levies. The justices said the law does not give the president authority to tax imports, a power reserved to Congress by the Constitution.

Now, the ruling leaves open a major question: what happens to the $133 billion the government already collected from these tariffs?

Naija News gathered that the US Customs and Border Protection agency had collected the massive sum by mid-December, and companies are now lining up to demand refunds.

“I guess it has to get litigated for the next two years. We’ll end up being in court for the next five years,” Trump told reporters Friday, expressing anger at the decision.

Meanwhile, in response to the development, one of the Justices who supported Trump’s tariffs, Justice Brett Kavanaugh, criticised the majority in his dissenting opinion for avoiding the question of refunds.

“The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers,” Kavanaugh wrote, warning the refund process would likely be a “mess.”

Companies Already Filing For Refunds

Major American companies, including Costco, Revlon and Bumble Bee Foods, had filed lawsuits seeking refunds even before the Supreme Court ruled, attempting to position themselves at the front of the line.

Trade lawyers say the refund process will likely involve US Customs and Border Protection, the Court of International Trade in New York, and other lower courts as they work through thousands of claims.

“It’s going to be a bumpy ride for a while. The amount of money is substantial,” said trade lawyer Joyce Adetutu, a partner at Vinson & Elkins law firm.

US Customs has never handled anything on this scale before: thousands of importers seeking tens of billions of dollars simultaneously.

Illinois Governor JB Pritzker has demanded refunds totalling $8.7 billion on behalf of his state’s households. Nevada Treasurer Zach Conine submitted a $2.1 billion payment request.

Consumers hoping for direct refunds are unlikely to receive compensation for the higher prices they paid. Trade lawyers say refunds are more likely to go to companies that imported goods and paid the tariffs directly.

Most countries still face other American tariffs on specific sectors, and Trump has indicated he plans to replace the struck-down levies with new tariffs under different legal authorities.