Federal trade judge orders Trump administration to start refunding $130B in tariffs

• Judge Eaton rejected the administration's claim that manual processing would be too time-consuming, stating computers could handle the refund calculations for millions of import entries
• The Supreme Court struck down Trump's 'Liberation Day' tariffs for improper use of the International Emergency Economic Powers Act, but did not address whether refunds were required
• Trump quickly imposed new tariffs under a different statute (Section 122 of the Trade Act of 1974), setting a baseline 10% global rate with plans to raise it to 15%

Summary: Federal Judge Orders $130B Tariff Refund Following Supreme Court Ruling

Key Development:

Judge Richard Eaton of the Manhattan-based Court of International Trade ordered the Trump administration Wednesday to begin refunding $130 billion in tariffs to importers, following the Supreme Court's striking down of the levies last month. The White House is expected to appeal, which would prevent immediate implementation.

Legal Background:

The Supreme Court invalidated Trump's "Liberation Day" tariffs, ruling the president improperly used the International Emergency Economic Powers Act. However, the justices left unresolved whether refunds were required, delegating that determination to the Court of International Trade.

Major Claimants:

Over 2,000 lawsuits have been filed by companies seeking refunds, including major firms such as Costco, FedEx, and Pandora Jewelry.

Implementation Challenges:

Justice Department lawyer Claudia Burke cited the time-consuming nature of processing millions of import entries manually. Judge Eaton countered that computerized systems should handle the task efficiently.

Current Status:

• The Trump administration has not taken a formal position on refunds
• Government lawyers previously indicated companies could be "made whole through a refund, including interest"
• Customs experts warn the refund process remains complex and uncertain

Policy Response:

Trump quickly implemented new tariffs under Section 122 of the Trade Act of 1974, maintaining a 10% baseline global tariff rate with plans to raise it to 15%. A coalition of state attorneys general, led by New York's Letitia James, plans to file suit Thursday challenging the revised tariff regime as an illegal circumvention of the Supreme Court ruling.