The recent ruling by the United States Supreme Court against tariffs imposed by the administration of former President Donald Trump has raised questions regarding the refund process for the $175 billion collected from these tariffs. In a 6–3 decision, Chief Justice John Roberts found that the President exceeded his authority by utilizing the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs on various trading partners.

This ruling did not clarify how and when the refunds would be administered, which has legal experts warning of potential complications. Justice Brett Kavanaugh indicated that the refund process could become cumbersome. The case will now return to the Court of International Trade, which will be responsible for overseeing the refunds.

Importers Brace for Legal Battles as Refund Process Looks Lengthy

There are currently over 1,000 lawsuits filed by importers in the trade court seeking refunds, and more cases are anticipated. Legal analysts indicate that importers may need to apply individually for refunds, a process that could place a heavier burden on small businesses adversely impacted by the tariffs.

Greg Shaffer, a law professor at Georgetown University, noted that the government may not initiate voluntary refunds and could require importers to navigate formal procedures. This scenario likely involves added costs and delays, especially affecting smaller enterprises that may find the process too complex or costly.

Many Tariffs Stay, New Global Levy Planned Despite Court Ruling

Notably, while Friday’s Supreme Court ruling invalidated certain tariffs, other significant tariffs remain in effect. Trump had previously invoked Section 232 of the Trade Expansion Act of 1962 to impose specific tariffs on sectors such as steel, aluminum, and automobiles, among others. Following the Supreme Court decision, Trump announced plans for a new 10 percent global tariff for a duration of 150 days, asserting that this would replace tariffs vacated by the court’s ruling.

The presidential authority under Section 122 of the Trade Act of 1974 allows the imposition of tariffs up to 15 percent during significant balance of payments issues, without requiring investigations. The administration has multiple avenues to maintain aggressive import taxes.

Congress Pressured to Rein In Executive Trade Powers Amid Uncertainty

Wendy Cutler, a vice president at the Asia Society Policy Institute, pointed out that global trading partners were aware of the legal risks involved with the President’s use of IEEPA but engaged with the United States, believing other statutes could support continued tariffs.

Section 301 of the Trade Act of 1974 remains a critical tool for addressing unfair trade practices, allowing the imposition of tariffs, though this requires an investigative process. Raj Bhala, a law professor at The University of Kansas, added that Section 338 of the Tariff Act of 1930 provides further options for the administration to impose tariffs in response to discriminatory practices.

The ruling has created pressure for Congress to take definite action regarding the scope of executive authority over trade. A former White House Office of Management and Budget official emphasized that Congress must define clear limits or take other significant steps, such as invoking war powers, to empower the President in future tariff decisions.

House Speaker Mike Johnson stated that discussions in Congress would determine the next steps, while Senate Democratic Leader Chuck Schumer welcomed the ruling as a significant move toward providing relief for families and small businesses adversely affected by tariff policies. However, questions remain regarding the logistics of how refunds will be processed and funded.

Experts warn that resolving these issues may not happen quickly. The process could take years, or even a decade, before all aspects of the tariff system are comprehensively addressed and refunds are disbursed to eligible parties.

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