Summary
The Supreme Court ruled that President Trump's tariffs, imposed under a 1977 law, were beyond his authority. This decision could require the government to refund billions of dollars in tariffs to importers, straining federal finances. Companies like FedEx are suing for refunds, and a new 10% global tariff has been introduced as a temporary measure.
Key Facts
- The Supreme Court ruled that President Trump overstepped his authority in imposing tariffs using the 1977 International Emergency Economic Powers Act (IEEPA).
- This decision may force the U.S. government to refund billions of dollars collected through these tariffs.
- Estimates suggest the government could need to refund between $100 billion and $175 billion.
- FedEx filed a lawsuit to seek a full refund of the tariffs it paid since early 2025.
- Over 1,800 American companies have filed lawsuits to recover duties paid under the annulled tariffs.
- A new 10% global tariff has been introduced as a temporary measure following the court ruling.
- The U.S. Trade Representative is awaiting guidance on how to proceed with tariff refunds.
- Senate Democrats proposed legislation to require refunds of all revenue collected from the IEEPA duties within 180 days.
