A US Supreme Court ruling striking down President Donald Trump’ssweeping tariffshas opened the door for potential refunds on select levies imposed on imports from countries including India. The decision, which found that the International Emergency Economic Powers Act (IEEPA) does not authorise such duties, has been welcomed by the US Chamber of Commerce as a major relief for businesses hit by rising costs and supply chain disruptions. The US business chamber on Friday said refunds would be available for some levies applied to goods from Brazil and India after the Supreme Court struck down President Donald Trump’s sweeping tariffs. Trump had imposed 25 per cent reciprocal tariffs on India and an additional 25 per cent punitive tariff for Delhi’s purchases of Russian oil. While he slashed the reciprocal tariffs to 18 per cent, the 25 per cent levies imposed for Russian oil purchases were removed as the two sides finalised an interim trade deal earlier this month.
In a 6-3 vote, the judges found that the International Emergency Economic Powers Act (IEEPA) does not authorise the imposition of duties. Justices Clarence Thomas, Samuel A Alito Jr. and Brett Kavanaugh dissented in the court's decision. After the decision, Trump said he was “absolutely ashamed” of some justices who ruled 6-3 against him, calling them “disloyal to our Constitution” and “lapdogs.”
The US Chamber of Commerce welcomed the Supreme Court’s decision to strike down Trump’s sweeping tariffs, calling on the administration to use this opportunity to reset the overall tariff policy to lower costs for families.
Executive Vice President and Chief Policy Officer at the US Chamber of Commerce Neil Bradley said the Supreme Court’s decision is “welcome news” for businesses and consumers.
“Over the past year, the Chamber has been working with small and midsize businesses around the country that have seen significant cost increases and supply chain disruptions as a result of these tariffs,” Bradley said in a statement.
“Swift refunds of the impermissible tariffs will be meaningful for the more than 200,000 small business importers in this country and will help support stronger economic growth this year,” he added.
It noted that the Court’s decision has “opened the door” for many US small businesses to seek refunds, but added that determining whether a business qualifies for the refund —and understanding what steps to take next—can be challenging.
US importers of record who directly paid the tariffs or the person who takes ownership of the goods once they have cleared customs (the “consignee”) may be eligible for a refund, it said in an FAQ about who could be eligible for the tariff refunds.
“Businesses that did not directly pay the tariffs are not eligible for a refund. Refunds are only available for tariffs applied under the International Economic Emergency Powers Act (IEEPA). This includes tariffs commonly known as “fentanyl,” “trafficking,” “reciprocal,” or “baseline” tariffs, as well as some other tariffs applied to goods from Brazil and India,” it said.
The chamber added that refunds are not available for so-called Section 232, Section 301, Section 201, anti-dumping and countervailing duties, or most-favoured nation (MFN) tariffs.
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