A US trade court has ordered the government to refund tariffs imposed during the presidency of Donald Trump, dealing a significant setback to one of the administrationās key economic policies.
The ruling came after several American companies challenged the tariffs, arguing that the government had improperly used emergency powers to impose duties on imported goods. The court found that the legal authority cited for the tariffs had been applied incorrectly, and ordered the administration to return the money collected from importers.
The tariffs had been introduced under emergency economic powers legislation and targeted a wide range of imports. Businesses claimed the duties increased costs for companies and consumers, leading to higher prices for many goods in the United States.
Following the decision, companies that paid the tariffs may now be eligible for refunds. The total amount that could be repaid is expected to reach billions of dollars, depending on how the ruling is implemented and how many firms file claims.