Trump Administration Defeated in Tariff Refund Ruling
By PAUL WISEMAN and MAE ANDERSON
WASHINGTON (AP) — A federal judge in New York delivered a blow to the Trump administration on Wednesday, ruling that companies affected by tariffs struck down by the Supreme Court last month are entitled to refunds.
Judge Richard Eaton of the U.S. Court of International Trade stated that all importers of record are eligible for refunds following the Supreme Court’s decision to overturn the double-digit import taxes imposed by President Trump under the 1977 International Emergency Economic Powers Act (IEEPA).
Eaton emphasized that he will oversee cases related to the refund of IEEPA duties, providing clarity on the refund process that was not addressed by the Supreme Court. Trade lawyer Ryan Majerus anticipates that the government may appeal or seek a stay to allow U.S. Customs more time to comply with the ruling.
The federal government had collected over $130 billion in tariffs before they were rescinded and could potentially owe $175 billion in refunds, as estimated by the Penn Wharton Budget Model.
The ruling pertained to a case brought by Atmus Filtration, a company based in Nashville, Tennessee, which manufactures filters and filtration products and is seeking a tariff refund.
Another federal court rejected the Trump administration’s efforts to delay the refund process, and the U.S. Court of Appeals for the Federal Circuit has now transferred the case to the New York trade court for resolution.
The U.S. Customs and Border Protection agency must now develop a system to process the refunds, which trade lawyer Alexis Early notes is a challenge due to the agency’s current refund system not being designed for mass refunds. The administrative process will be crucial in ensuring a smooth refund process.
Anderson reported from New York.
AP Writer Lindsay Whitehurst contributed to this story.
