U.S. tariffs face legal chaos
U.S. courts are questioning the legal basis for President Trump’s 10% global tariffs, prompting new federal challenges and a planned refund process for some importers starting April 20. Legal uncertainty and potential refunds are already complicating trade flows and duty calculations. (businesstimes.com.sg) (freemalaysiatoday.com) (npr.org)
President Donald Trump’s 10% tariff on most imports is back in court, and some companies may start getting refunds on older tariff payments on April 20. (politico.com) A three-judge panel at the U.S. Court of International Trade heard arguments on April 10 in lawsuits brought by 24 mostly Democratic-led states and two small businesses. The challengers say Trump’s latest tariff, which took effect on February 24, tries to replace an earlier tariff program the Supreme Court struck down in February. (reuters.com) At the hearing, judges pressed government lawyers on whether a long-running U.S. trade deficit is enough to justify a blanket tariff. The administration says a 1974 law, Section 122 of the Trade Act, lets the president impose tariffs of up to 15% for 150 days to address balance-of-payments problems. (abcnews.go.com) The legal fight sits on top of an older one. The Supreme Court ruled on February 20 that Trump’s earlier tariffs under the International Emergency Economic Powers Act, a sanctions law known as IEEPA, went beyond the statute he used. (npr.org) That ruling set off a second problem: refunds. U.S. Customs and Border Protection is expected to begin a refund system on or around April 20 for tariffs collected under IEEPA, according to business groups and trade lawyers tracking the agency’s rollout. (uschamber.com) Those refunds cover duties paid on IEEPA-based tariffs from 2025 into February 2026, while the new 10% tariff is being collected under a different law. That split is forcing importers and customs brokers to separate old entries from new ones while court challenges continue. (bdo.com) The states and businesses challenging the new tariff say Section 122 was written for short-term balance-of-payments crises, not as a standing tool for a global import tax. The administration says Congress gave the president that authority and that the tariff is temporary. (thehill.com) The Court of International Trade did not rule from the bench on April 10. Until judges decide whether the tariff can stay in place, importers are paying the 10% duty on new shipments while preparing claims for money tied to the tariffs the Supreme Court already knocked out. (businesstimes.com.sg)
