U.S. Faces $133.5B Tariff Refund Risk as Supreme Court Reviews Trump-Era Trade Policy
The U.S. Supreme Court is scrutinizing the legality of tariffs imposed during the TRUMP administration under the International Emergency Economic Powers Act (IEEPA). These tariffs, applied since February 2025, targeted imports from China, Mexico, and Canada, later expanding to global 'reciprocal' duties. A ruling against the government could trigger refunds exceeding $133.5 billion to affected companies.
Justices heard arguments in November, with decisions expected imminently. The Core legal question revolves around whether IEEPA—a 1977 statute reserved for national emergencies—was improperly weaponized for trade policy. Refund mechanisms remain undefined, leaving lower courts to determine disbursement logistics, which may delay repayments for years.
