Tezzbuzz Desk- US President Donald Trump’s trade policies have suffered a major setback on the legal front, the impact of which is being felt not only in the US but also in the global markets. New York Federal Judge Richard Eaton recently made it clear that companies who have paid invalid tariffs (import duties) imposed by the Trump administration are all entitled to get their money back.
The dispute is related to the heavy tax imposed under the International Emergency Economic Powers Act (IEEPA) of 1977. The US Supreme Court had already rejected the Trump administration’s double-digit import tariffs as unconstitutional. Now Judge Eaton also directed that the scope of refund will not be limited only to the companies that approached the court, but it will be applicable to all importers who paid duty under this emergency law.
The financial impact of the court’s decision is huge. By December 2025, the US government had collected about $130 billion (about Rs 12 lakh crore) through these disputed tariffs. If we add the recovery after December in the refund process, then the total amount can reach about $ 175 billion (about Rs 16.12 lakh crore).
The court gave this order in the case of filter manufacturing company Atmus Filtration. The Trump administration had tried to slow down the refund process, but the US Court of Appeals rejected the government’s argument and directed to dispose of the case expeditiously.
After the defeat in the court, the Trump administration has adopted a strategy of counterattack. US Treasury Secretary Scott Besant has indicated that the 10% universal tariff could be increased to 15%. This new tax slab is likely to be announced this week. However, under legal provisions this new tariff will be effective only for 150 days.
US officials now have five months in which to explore new legal options to reimpose the old tariff rates. The Treasury Secretary believes that tariffs imposed under ‘Section 301’ and ‘Section 232’ are more legally sound, although their process is a bit slow.
Experts believe that the impact of this decision will not be limited to America only, but will also have major economic and strategic consequences for the global business world and American trading partners. Refunds worth billions of dollars and implementation of new tariff slabs may increase instability in international trade.
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