A US federal judge has ruled that thousands of businesses are entitled to refunds for tariffs introduced by President Donald Trump last year, marking a significant development in an ongoing trade dispute that has implications for global retailers and suppliers.
The decision follows a recent ruling by the US Supreme Court, which struck down a series of import tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
On Wednesday, the US Court of International Trade ordered Customs and Border Protection (CBP) to begin issuing refunds to affected importers.
Judge Richard Eaton wrote in the ruling that “all importers of record whose entries were subject to IEEPA duties are entitled to the benefit” of the Supreme Court’s decision.
The judgement stems from a case brought by Tennessee-based filtration company Atmus Filtration, though the ruling has far wider consequences for businesses that paid the tariffs.
Eaton confirmed he will oversee all related refund cases moving forward, centralising legal challenges connected to the now-invalidated duties.
The tariffs, introduced last year under emergency powers, applied to most goods imported into the US and generated an estimated $130bn (£97bn) in revenue for the government.
A number of major companies have already launched legal action to reclaim those funds, including global logistics firm FedEx.
Unclear path to refunds
Despite the ruling, the process for distributing refunds remains uncertain.
Businesses and trade groups are calling for the government to implement a clear and automatic system to return the funds.
Dan Anthony, spokesperson for We Pay the Tariffs, a coalition representing small businesses seeking reimbursement, described the ruling as a “victory”.
“American small businesses have waited long enough,” he said. “A full, fast, and automatic refund process is what these businesses are owed and anything less is unacceptable.”
New tariffs could replace struck-down duties
The decision represents a setback for the Trump administration, which had sought to defend the tariffs and has warned about the financial implications of large-scale refunds.
In response, US Treasury Secretary Scott Bessent indicated the government is likely to introduce a new global tariff of 15 per cent, up from the previous baseline of 10 per cent.
The proposed tariff would replace the duties imposed under the IEEPA framework that were invalidated by the Supreme Court.
Ongoing uncertainty for global trade
The dispute is part of a broader shift in US trade policy.
Last April, Trump announced sweeping “Liberation Day” tariffs affecting dozens of countries, with rates ranging from 10 per cent to as high as 50 per cent in some cases.
The measures triggered a wave of trade negotiations as governments sought to secure lower tariffs in exchange for investment commitments and policy concessions.
However, the Supreme Court ruling last month struck down those tariffs as well as separate duties previously imposed on goods from Mexico, Canada and China, ruling that the administration had exceeded the limits of its emergency powers.
For retailers and import-heavy sectors, the decision could provide financial relief if refunds are processed quickly.
However, the possibility of new tariffs means uncertainty remains high for global supply chains and pricing strategies.
Businesses importing goods into the US now face a shifting trade environment, with both refund claims and new tariff proposals likely to shape costs over the coming months.
