The Dictatorship
The Supreme Court struck down Trump’s tariffs. Now comes the hard work of issuing refunds
WASHINGTON (AP) — The Supreme Court on Friday struck down President Donald Trump’s biggest and boldest tariffs. But the justices left a $133 billion question unanswered: What’s going to happen to the money the government has already collected in import taxes now declared unlawful?
Companies have been lining up for refunds. But the way forward could prove chaotic.
When the smoke clears, trade lawyers say, importers are likely to get money back — eventually. “It’s going to be a bumpy ride for awhile,” said trade lawyer Joyce Adetutu, a partner at the Vinson & Elkins law firm.
The refund process is likely to be hashed out by a mix of the U.S. Customs and Border Protection agency, the specialized Court of International Trade in New York and other lower courts, according to a note to clients by lawyers at the legal firm Clark Hill.
“The amount of money is substantial,” Adetutu said. “The courts are going to have a hard time. Importers are going to have a hard time.’’
Still, she added, “it’s going to be really difficult not to have some sort of refund option’’ given how decisively the Supreme Court repudiated Trump’s tariffs.
In its 6-3 opinion on Friday, the court ruled Trump’s attempt to use an emergency powers law to enact the levies was not valid. Two of the three justices appointed by Trump joined the majority in striking down the first major piece of his second-term agenda to come before them.
At issue are double-digit tariffs Trump imposed on almost every country in the world last year by invoking the 1977 International Emergency Economic Powers Act (IEEPA). The Supreme Court ruled that the law did not give the president authority to tax imports, a power that belongs to Congress.
The U.S. customs agency has already collected $133 billion in IEEPA tariffs as of mid-December. But consumers hoping for a refund are unlikely to be compensated for the higher prices they paid when companies passed along the cost of the tariffs; that’s more likely to go to the companies themselves.
In a dissenting opinion, Justice Brett Kavanaugh dinged his colleagues for dodging the refund issue: “The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers.’’
Borrowing a word that Justice Amy Coney Barrett — who sided with the majority — used during the court’s November hearing on the case, Kavanaugh warned that “the refund process is likely to be a ‘mess.’”
“I guess it has to get litigated for the next two years,” Trump told reporters at a press conference Friday, in which he decried the court’s decision and said he was “absolutely ashamed” of some justices who ruled against his tariffs. “We’ll end up being in court for the next five years.’’
The end of the IEEPA tariffs could help the economy by easing inflationary pressures. The tariff refunds — like other tax refunds — could stimulate spending and growth. But the impacts are likely to be modest.
Most countries still face steep tariffs from the U.S. on specific sectors, and Trump intends to replace the IEEPA levies using other options. The refunds that do get issued will take time to roll out — 12 to 18 months, estimates TD Securities.
The U.S. customs agency does have a process for refunding duties when importers can show there’s been some kind of error. The agency might try to build on the existing system to refund Trump’s IEEPA tariffs, said trade lawyer Dave Townsend, a partner with the law firm Dorsey & Whitney.
And there has been a precedent for courts making arrangements to give companies their money back in trade cases. In the 1990s, the courts struck down as unconstitutional a harbor maintenance fee on exports and set up a system for exporters to apply for refunds.
But the courts and U.S. customs have never had to deal with anything like this — thousands of importers and tens of billions of dollars at once.
“Just because the process is difficult to administer doesn’t mean the government has the right to hold on to fees that were collected unlawfully,″ said trade lawyer Alexis Early, partner at the law firm Bryan Cave Leighton Paisner.
Ryan Majerus, a partner at King & Spalding and a former U.S. trade official, said it’s hard to know how the government will deal with the massive demand for refunds. It might try to streamline the process, perhaps setting up a special website where importers can claim their refunds.
But Adetutu warns that “the government is well-positioned to make this as difficult as possible for importers. I can see a world where they push as much responsibility as possible onto the importer’’ — maybe forcing them to go to court to seek the refunds.
Many companies, including Costco, Revlon and canned seafood and chicken producer Bumble Bee Foods, filed lawsuits claiming refunds even before the Supreme Court ruled, essentially seeking to be at the head of line if the tariffs were struck down.
There are likely to be more legal battles ahead. Manufacturers might, for example, sue for a share of any refunds given to suppliers that jacked up the price of raw materials to cover the tariffs.
“We may see years of ongoing litigation in multiple jurisdictions,’’ Early said.
Consumers, though, are unlikely to enjoy a refund windfall. The higher prices they’ve had to pay would likely be hard to attribute to a specific tariff. Should they pursue refunds anyway? Early wouldn’t advise wasting money on legal fees, but said: “In America, we have the ability to file a lawsuit for anything we want.’’
Illinois Gov. JB Pritzker, a Democrat and Trump antagonist, is demanding a refund on behalf of his state’s 5.11 million households. In a letter addressed to Trump and released by Pritzker’s gubernatorial campaign, the governor said the tariffs had cost each Illinois household $1,700 — or $8.7 billion. Pritzker said failure to pay will elicit “further action.’’
Nevada Treasurer Zach Conine submitted a payment request to the federal government for $2.1 billion to recoup the costs of the tariffs, his office announced Friday.
“As Nevada’s chief investment officer, I have a responsibility to try to recoup every single dollar that the Trump Administration takes from Nevada families,” Conine said in a statement.
___
AP Writers Lindsay Whitehurst and Christopher Rugaber in Washington, Jessica Hill in Las Vegas and John O’Connor in Springfield, Illinois, contributed to this story.
The Dictatorship
The Latest: US hits pro-government demonstration in Iran as war threatens global economy
-
World
TOP STORIES
-
U.S.
TOP STORIES
-
Politics
SECTIONS
TOP STORIES
-
Sports
SECTIONS
TOP STORIES
-
Entertainment
SECTIONS
TOP STORIES
-
Oddities
TOP STORIES
- A red fox stows away on a cargo ship, traveling from England to the US
- Viral phenomenon in Argentina has young people identifying themselves as animals
- Raccoon goes on drunken rampage in Virginia liquor store and passes out on bathroom floor
- Otters enjoy a snow day in Maryland during winter storm
- Injured mother manatee and calf are rescued in Florida and taken to SeaWorld
- A colorful ‘flour war’ in Greece marks the start of Lent, in photos
-
Photography
SECTIONS
TOP STORIES
-
Health
TOP STORIES
- Flu vaccines didn’t work that well in the US, officials find
- Some people tape their mouths shut at night. Doctors wish they wouldn’t
- Challenging your brain helps keep it healthy. Here’s how to do it
- Colorectal cancer is rising in younger adults. Here’s who is most at risk and symptoms to watch for
- Rage, suspicion, fear: Why Laurel’s residents want to stop a new state psychiatric facility
- Baby is born after the rarest of pregnancies, defying all odds
-
Tech
SECTIONS
-
Religion
TOP STORIES
-
MORE
The Dictatorship
Suspect in Temple Israel attack lost family in Israeli airstrikes
The suspect in an attack at a synagogue near Detroit lost several family members in an Israeli airstrike in Lebanon this month, according to the Islamic Institute of America in Dearborn and community leaders.
Ayman Mohamad Ghazali, a 41-year-old U.S. citizen originally from Lebanon, lost his two brothers and a niece and nephew in the strike on their home, according to those sources. Whether that played a role in the motive for the attack remains unclear, and Gov. Gretchen Whitmer deferred a question about it to the FBI on Friday, citing an ongoing investigation.
Authorities are looking at the possibility Ghazali may have had familial ties to Hezbollah in Lebanon, two law enforcement officials briefed on the investigation told MS NOW.
Ghazali died in the Thursday attack, in which authorities say he drove a car into Temple Israel in West Bloomfield, Michigan, injuring a security officer. Ghazali was a resident of Dearborn Heights, Mayor Mo Baydoun said in a Facebook post. Baydoun also said in that post that Ghazali “lost several members of his own family, including his niece and nephew, in an Israeli attack on their home in Lebanon” this month.
The Thursday attack in Michigan came as the U.S. and Israel wage a war with Iranwhich they launched on Feb. 28. Security around Jewish communities in places such as New York has been heightened since the conflict began.
Ghazali first came to the U.S. in 2011 on a spousal visa before being granted citizenship in 2016, a spokesperson for the Department of Homeland Security said.
In a phone interview with Fox host Brian Kilmeade, President Donald Trump appeared to blame former President Joe Biden for Ghazali’s entry into the country when asked about the Michigan attack and the deadly shooting at Old Dominion University in Michigan.
“They came in a lot through Biden, and they came in through other presidents, frankly, and it’s a disgrace,” Trump said.
Temple Israel describes itself as the country’s largest Jewish Reform congregation, and it also has an early childhood education center on site that more than 100 kids attend, Whitmer said. All children were safely evacuated following the attack, Oakland County Sheriff Michael Bouchard said.
“This is targeting babies who are Jewish,” Whitmer said. “That’s antisemitism at its absolute worst.”
The security guard who was injured was hospitalized but is expected to recover.
Whitmer on Friday thanked the synagogue’s security personnel, who she said “were selfless in their courage and they saved lives.”
Sen. Elissa Slotkin, D-Mich., added that if the synagogue’s private security, local law enforcement and first responders “had not all done their jobs almost perfectly, we would be talking about an immense tragedy here today with children gone.”
Andrew Bossone and Chris O’Leary contributed to this report.
Julianne McShane is a breaking news reporter for MS NOW who also covers the politics of abortion and reproductive rights. You can send her tips from a non-work device on Signal at jmcshane.19 or follow her on X or Bluesky.
Marc Santia is an investigative correspondent for MS NOW.
The Dictatorship
Missile strikes a helipad inside the U.S. Embassy compound in Baghdad, Iraqi security officials say
BAGHDAD (AP) — A missile struck a helipad inside the U.S. Embassy compound in Baghdad, two Iraqi security officials said.
Associated Press footage showed a column of smoke rising Saturday morning over the embassy compound.
The sprawling embassy complex, one of the largest U.S. diplomatic facilities in the world, has been repeatedly targeted by rockets and drones fired by Iran-aligned militias.
There was no immediate comment from the U.S. Embassy in Baghdad. On Friday, the embassy renewed its Level 4 security alert for Iraq, warning that Iran and Iran-aligned militia groups have previously carried out attacks against U.S. citizens, interests and infrastructure, and “may continue to target them.”
-
The Dictatorship1 year agoLuigi Mangione acknowledges public support in first official statement since arrest
-
Politics1 year agoFormer ‘Squad’ members launching ‘Bowman and Bush’ YouTube show
-
Politics1 year agoBlue Light News’s Editorial Director Ryan Hutchins speaks at Blue Light News’s 2025 Governors Summit
-
Politics1 year agoFormer Kentucky AG Daniel Cameron launches Senate bid
-
The Dictatorship6 months agoMike Johnson sums up the GOP’s arrogant position on military occupation with two words
-
The Dictatorship1 year agoPete Hegseth’s tenure at the Pentagon goes from bad to worse
-
Politics11 months agoDemocrat challenging Joni Ernst: I want to ‘tear down’ party, ‘build it back up’
-
Uncategorized1 year ago
Bob Good to step down as Freedom Caucus chair this week






