After the US Supreme Court delivered a ruling invalidating the tariffs, the Trump administration has yet to give a clear response on what will happen to the billions of dollars US companies paid after Trump imposed tariffs on countries last year.
This comes as the administration – both formally and informally – has promised refunds of duties collected. However, neither the administration nor the justices have specified how the process would work.
With more than 3,00,000 businesses seeking refunds of $170 billion in tariffs, Justice Brett Kavanaugh wrote during the hearing: “Refunds of billions of dollars would have significant consequences for the US Treasury.”
“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. But that process is likely to be a ‘mess,’ as was acknowledged at oral argument,” he added.
That effectively means individual importers may have to file their own lawsuits for a chance at refunds, despite the government maintaining detailed records of tariff payments.
Speaking to CNN, trade attorney Ted Posner, a partner at Baker Botts, said: “The case was never about refunds, and it was inconceivable that the Supreme Court would get into the weeds of how you apply refunds.”
“We’re now talking to companies about the next steps, which means more waiting, this time for the Court of International Trade. Any refund process is going to require meticulous submissions, and for now, companies and even countries are left in limbo,” he added.
Earlier, Treasury Secretary Scott Bessent told Reuters that the agency has enough cash on hand to refund importers, but warned the process could take up to a year.
“It won’t be a problem if we have to do it, but I can tell you that if it happens — which I don’t think it’s going to — it’s just a corporate boondoggle,” Bessent said.
This would not be the first time the government has had to issue tariff refunds following a Supreme Court decision.
A 1998 ruling resulted in $730 million in refunds to American companies, though the process took two years.
Earlier on Friday, the US Supreme Court struck down President Donald Trump’s far-reaching global tariffs, handing him a significant setback on an issue central to his economic agenda.
The 6–3 decision centred on tariffs imposed under an emergency powers law, including the sweeping reciprocal tariffs Trump levied on nearly every country.
The majority held that the Constitution clearly grants Congress the power to impose taxes, including tariffs.
Trump, however, said “nothing changes” in the trade deal with India following the verdict and responded by announcing an additional 10 per cent global levy on imports.
Trump also lashed out at the justices who ruled against him, calling them “fools and lapdogs.”
“The Supreme Court’s ruling on tariffs is deeply disappointing, and I’m ashamed of certain members of the Court — absolutely ashamed — for not having the courage to do what’s right for our country,” Trump said at a White House news conference.
