US tariff ruling brings focus on over $150 billion in potential refunds

New Delhi, Feb 20 (IANS) Industry experts said on Friday that the US Supreme Court ruling against reciprocal tariffs raises questions about whether importers could receive refunds for tariffs collected under the International Emergency Economic Powers Act (IEEPA).

Economists estimate that $150 to $175 billion in tariff collections may be at risk if refunds are required.

Justice Brett Kavanaugh said in the ruling that, “nothing today about whether, and if so how, the government should go about returning the billions of dollars that it has collected from importers.”

The repayment process could be chaotic, said experts.

Businesses and importers may face uncertainty over refunds, while exporters may benefit from a potential rollback of unlawful tariffs. Analysts say this ruling could reshape future U.S. trade enforcement, reducing unilateral use of emergency economic powers.

The ruling also underscores the legal complexities of Trump’s approach, which combined broad “reciprocal” tariffs on trade partners with targeted duties linked to immigration and drug concerns, reflecting the administration’s aggressive use of trade tools to achieve foreign policy goals.

Earlier, the Supreme Court struck down President Donald Trump’s sweeping reciprocal tariff measures, in a ruling that the executive branch exceeded its constitutional authority by using emergency powers to levy broad import duties.

The judges, in a 6-3 verdict, held that Trump's aggressive approach to tariffs on products entering the United States from across the world was not permitted under a 1977 law called the IEEPA.

The ruling invalidates many, but not all, of Trump’s tariffs. He is expected to make an attempt to reimpose some tariffs using other laws.

An angry Trump called the judgment a “disgrace" after being informed about it during a meeting with governors. He also said he had a backup plan, according to US media reports.

The verdict is considered a huge setback for the Trump administration, in a Supreme Court that has a 6-3 conservative majority.

Businesses that had to pay the tariffs and challenged them in court welcomed the Supreme Court judgment.

--IANS

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