Will you get a refund for Trump tariffs after federal court's ruling? Check details

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US President Donald Trump on Thursday received temporary approval to continue collecting tariffs under emergency powers, just a day after a separate court ruled that he had exceeded his authority by imposing sweeping levies on foreign imports. The US Court of Appeals for the Federal Circuit allowed the April 2 tariffs to remain in place while the White House appeals the trade court's decision. The New York-based court said the US Constitution gave Congress exclusive powers to regulate commerce with other nations, and that this was not superseded by the president's remit to safeguard the economy.Small businesses and a group of states had challenged the tariffs that have shaken up the world economic order. Now that two federal courts have ruled that President Trump had overstepped his authority in ordering the tariffs, many have been asking one question: Will they get that money back?On Wednesday, a three-judge panel at the U.S. Court of International Trade (CIT) ruled that the International Emergency Economic Powers Act (IEEPA) did not grant the president authority to impose his sweeping tariffs or bypass Congress' typical control over economic policy and commerce. The 1977 law was cited by Trump as justification for the majority of his tariffs, most notably those unveiled on "Liberation Day" in early April."The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder," the ruling read. The decision, made after multiple lawsuits accusing the president of overstepping authority on trade matters, addresses the paused 'reciprocal' tariffs as well as the 10 percent baseline tariff applied worldwide. Additionally, the ruling stops the 'trafficking' tariffs that were imposed on China, Canada, and Mexico in response to the public health crisis linked to fentanyl and other illegal drugs entering the US.However, the ruling does not concern the tariffs on autos, auto parts, steel or aluminum, which were brought under Section 232 of the Trade Expansion Act. It allows the president to limit imports of specific goods if these are considered a threat to national security."This will do tremendous damage to Trump's agenda. His whole second term seemed to be DOGE, deport, and (trade) deals," Todd Tucker, trade expert with the New York-based Roosevelt Institute think tank, posted to BlueSky on Thursday. "On trade, in particular, why would any country waste time negotiating to lower his tariffs if he can't impose them in the first place?"The administration has already appealed to the Court of Appeals for the Federal Circuit, describing the CIT's ruling as a 'judicial coup.' Meanwhile, economists have highlighted alternative options for the president to pursue his trade agenda despite the court's decision.If the ruling is upheld, the administration may be required to refund billions of dollars in import duties that have already been collected. According to the Kobeissi Letter, approximately $10 billion in tariff revenue has been gathered since April 2, though an analysis by Newsweek using official Treasury Department data suggests the amount could be significantly higher.William Reinsch, former under secretary of commerce for export administration under the Clinton administration and president of the National Foreign Trade Council from 2001 to 2016, told Newsweek, 'I believe the court's order should prompt CBP to suspend the liquidation of entries moving forward. This would mean that if the ruling is ultimately upheld, importers could reclaim their payments.'Reinsch told Newsweek that, for goods already processed by customs authorities, importers may also be able to sue the administration."The CIT decision ruling the tariffs illegal and vacating them gives importers good grounds to do that," he said, "but the administration will probably resist."The Trump administration has acknowledged its responsibility to issue refunds for certain tariff charges if those duties are later reduced or rescinded. In late April, following a decision that some tariffs should not be cumulative or 'stacked,' Trump signed an executive order stating that the change would apply retroactively to specific tariffs. Refunds for those who had paid increased import taxes would be issued in accordance with U.S. Customs and Border Protection (CBP) procedures and applicable laws.This stance was also reflected in the administration's announcements regarding exemptions to the reciprocal tariffs. The CBP has since issued guidance outlining how importers can request refunds for duties paid on products that later became exempt or subject to lower tariffs. While importers—usually U.S. companies, though sometimes foreign exporters contractually responsible for duties—may qualify for refunds, William Reinsch told Newsweek that consumers are unlikely to benefit from the Court of International Trade's (CIT) ruling, even if they paid higher prices on imported goods in recent months.'The importers who paid the tariffs might be reimbursed, but they're not required to pass those savings on to consumers—although some might do so voluntarily,' Reinsch said. He added that he was skeptical any consumer-led lawsuits for damages would be successful.