Nicolai Haugsted
Trump celebrates tariffs while $100 billion quietly flows back to businesses.
Donald Trump’s tariff policy has suffered one of its biggest legal and financial setbacks yet, with the administration now beginning to return roughly $100 billion collected under tariffs that the U.S. Supreme Court ruled were imposed unlawfully.
The refunds follow the court’s February decision that Trump’s so-called “reciprocal” tariffs, introduced on “Liberation Day” under the 1977 International Emergency Economic Powers Act, exceeded presidential authority and violated the Constitution.
According to The Daily Beast via. a court filing, U.S. Customs and Border Protection has processed 252,496 refund declarations covering more than 25 million import entries.
Brandon Lord, a Customs and Border Protection official, said approximately $100 billion has been prepared for payment by the Treasury Department.
Government figures show the tariffs generated around $166 billion in revenue, meaning roughly $66 billion still remains to be refunded.
Companies continue legal battle
Tuesday’s filing was submitted as part of a class-action lawsuit led by California-based Freestyle World on behalf of smaller businesses that argue the current refund process remains difficult to navigate.
Many companies had paid significantly higher costs to import goods while the tariffs were in force. The Supreme Court’s decision has now opened the door for those businesses to reclaim money collected under the policy.
Despite the ruling, Trump insisted the policy had been successful.
“Tariffs have been incredible. We’ve taken in hundreds of billions of dollars,” he told Fox News.
Trump also argued that the administration still has other legal avenues available.
“Supreme Court gave us a little shot, but we’re allowed to do it in a different manner,” he said.
New legal challenges already underway
Following the Supreme Court defeat, the administration has pursued alternative legal mechanisms to continue imposing tariffs.
Those efforts are also facing opposition in court. A coalition of 25 Democratic-led states filed a lawsuit this week, arguing that Trump’s latest tariffs, introduced under the 1974 Trade Act, are likewise unlawful.
New York Attorney General Letitia James accused the administration of ignoring the court’s earlier decision.
“After losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses with a new round of tariffs,” James said in a statement.
The White House rejected that criticism, with spokesperson Kush Desai maintaining that the administration is acting within its legal authority to protect U.S. commerce and address unfair foreign trade practices.
