A bombshell court ruling declaring a major set of Donald Trump’s tariffs illegal has opened the door for U.S. importers to potentially receive billions of dollars in refunds. The decision found that the former president misused a national emergency law, meaning the duties collected under it may have been unlawful.
The U.S. Court of Appeals for the Federal Circuit ruled that the International Emergency Economic Powers Act (IEEPA) was not a valid tool for imposing widespread tariffs. This decision sides with the thousands of American companies that paid these duties on imported goods and passed much of the cost on to consumers, arguing from the start that the levies were illegal.
The appeals court has now tasked the lower Court of International Trade with a monumental challenge: to determine the extent to which these collected tariffs must be repaid. This process will involve complex legal arguments and could result in one of the largest government refund programs in recent history, impacting businesses across all sectors of the economy.
While the Trump team has vowed to appeal to the Supreme Court, which could delay or reverse the outcome, the ruling provides a significant victory for businesses that have been squeezed by the tariffs. It shifts the financial risk back to the government and raises the stakes for the final legal showdown.