US returns $100bn in tariffs after court ruling
The US Trump administration has refunded about $100bn of tariffs ruled illegal by the Supreme Court, amounting to 60% of the total collected. A coalition of 25 states is now challenging a new tariff round as an unlawful attempt to restore the struck-down import taxes.
The Trump administration has reimbursed approximately $100 billion in tariffs that were collected before the US Supreme Court declared them unlawful. This sum represents 60% of the $165 billion raised under the president's "liberation day" tariff scheme, according to a report from customs officials delivered to the US Court of International Trade on Tuesday, as cited by the Financial Times.
Tariffs, effectively taxes on imported goods, have been a cornerstone of Trump's economic agenda since he returned to office. In February, the Supreme Court invalidated a significant portion of these additional duties, compelling the government to compensate the companies that had paid them.
Trump has consistently argued that tariffs would revitalise the US economy by encouraging domestic manufacturing, securing more favourable trade agreements, and narrowing the federal budget deficit. However, the deficit has widened after a period of improvement. For the first nine months of the fiscal year, it reached $1.37 trillion, up 2% from the same period in 2025.
Last month, the administration introduced a new set of tariffs on more than 80 countries, replacing a 10% global duty that was due to lapse. The new rates range from 10% to 12.5% and apply to nations including the UK, Mexico, Canada, Australia, India, China, and all 27 member states of the European Union.
These latest levies are based on Section 301 of the Trade Act of 1974, which targets countries engaging in forced labour. This week, a coalition of 25 US states filed a lawsuit against the administration, arguing that the tariffs are merely a pretext for reinstating import taxes that the Supreme Court struck down in February. The states are urging the Court of International Trade to halt the tariffs, declare them unlawful, and order refunds for duties already collected.
The states point out that the tariffs, which cover 59 countries and the EU, affect 99.4% of all US imports. Administration officials maintain that the targeted nations have not made sufficient efforts to eliminate products made with forced labour. In response, New York Attorney General Letitia James said the administration, after its defeat at the Supreme Court, is "once again trying to illegally raise taxes on families and businesses" through the new tariff round.
