US Preps Global Tariff, Court Orders Refunds
The U.S. Treasury is poised to implement a 15% global tariff as early as this week, according to Secretary Scott Bessent. The protectionist move aims to "level the playing field" for American industries. Meanwhile, a federal trade court dealt a blow to the administration, ordering refunds for thousands of businesses on previously collected tariffs, questioning the legal basis of the ongoing trade war.
The new tariff action is a direct response to a recent Supreme Court ruling that struck down the administration's previous, country-specific tariffs. Those were implemented under the International Emergency Economic Powers Act (IEEPA), a legal basis the court found improper for broad tariff imposition. This 15% global tariff is being enacted under Section 122 of the Trade Act of 1974, a provision unused by any prior president. This law allows for a temporary surcharge, lasting a maximum of 150 days, unless it is extended by Congress. The 150-day period is designed to be a window for the administration to conduct new trade investigations. Treasury Secretary Bessent has stated his belief that by using other authorities, such as Section 301 and Section 232, the original, often higher, tariff rates could be restored within five months. The court-ordered refunds could be one of the largest such repayments in U.S. history, with estimates ranging from $130 billion to $175 billion owed to businesses. Judge Richard Eaton of the U.S. Court of International Trade ruled that all importers who paid the now-illegal IEEPA duties are entitled to get their money back. The previous tariff regime had pushed the average effective U.S. tariff rate in 2025 to 7.7%, the highest level since 1947. During that time, U.S. factory employment fell by 108,000 jobs, with many manufacturers citing rising costs and supply chain disruptions due to the duties.
