Will the U.S. Refund $13.4 Billion Collected via Trump’s Tariffs? Supreme Court Rules Them Illegal

Washington: The U.S. Supreme Court has dealt a major blow to former President Donald Trump by declaring the global tariffs he imposed as illegal. The Court ruled that Trump exceeded his authority and that the International Emergency Economic Powers Act (IEEPA) does not permit the president to unilaterally impose such tariffs.

Trump had repeatedly defended the tariffs, claiming they generated significant revenue for the U.S. government. However, the Supreme Court has now invalidated these measures, raising questions about the fate of the billions collected under them. Notably, the Court did not clarify whether the revenue should be returned to the affected countries.

$13.4 Billion Collected from Importers

According to filings from the U.S. Customs and Border Protection submitted to the U.S. Court of International Trade, as of December 14 last year, the federal government had collected $13.4 billion in tariffs from over 301,000 importers worldwide.

Justice Brett Kavanaugh, writing for the majority, noted that the Court did not issue any instructions regarding whether the government should refund the billions collected. He acknowledged potential complications if refunds were to be issued.

Uncertainty Over Refunds

The question of reimbursing importers and foreign countries remains unresolved. Officials from the Trump administration have argued that mass repayments could have destabilizing effects on the U.S. economy. Experts caution that it is premature to predict whether the U.S. will return the funds to countries such as India and others affected by the tariffs.

The Supreme Court’s ruling emphasizes that the authority to impose tariffs lies with Congress, not the President. This landmark decision challenges the legality of Trump’s unilateral economic actions and leaves the question of financial restitution to lower courts.