US Trade Tariffs Refund: A big blow to Trump, he will have to return Rs 14.5 lakh crore of tariffs, International Trade Court’s decision …

The US International Trade Court ordered the Trump Administration to refund companies the tariffs imposed by President Donald Trump. By December, ₹10.79 lakh crore had been collected from tariffs, and total refunds could reach ₹14.5 lakh crore. Judge Richard Eaton ordered the removal of tariffs and a recalculation in the pending case.

Trump had imposed tariffs on many countries under the International Emergency Economic Powers Act of 1977. American companies challenged this in court. On February 20, 2026, the Supreme Court canceled the tariff, saying that the right to set the tariff does not lie with the President, but with Congress. At that time, there was no clarity on refunds. The judge ordered the refund in response to Tennessee’s atomic filtration petition.

Eaton was appointed by Clinton and will also hear the tariff refund case. Former President Bill Clinton appointed Judge Eaton in 1999. Eaton said he would personally hear the tariff refund to avoid complications in the refund process.

The Trump Administration now has three options:

  1. Appeal: The government can challenge the policy in the higher court.
  2. Stay: The government can demand temporary stay.
  3. delay: After final settlement (liquidation) at Customs, the importer has 180 days to file a claim/challenge. Due to this the government can delay the refund by up to six months.

The Supreme Court reprimanded Trump and said that the US is not at war with every country. Earlier, on February 20, the Supreme Court had reprimanded the Trump Administration and said that the US is not at war with every country in the world. However, three justices – Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh – dissented from the decision.

Kavanaugh wrote in his note that whether the tariff policy was sensible or not is a separate question, but he believed it was legally valid. In his note, Kavanaugh also mentioned the tariffs imposed on India for purchasing oil from Russia. He wrote that these tariffs were imposed on sensitive issues related to foreign policy and national security.

There are a total of nine judges in the US Supreme Court. Six of these judges were appointed by Republican Presidents, while three were appointed by Democratic Presidents. The three judges who voted against the decision were appointed by Republican presidents. Trump is also a Republican.

Trump increased global tariff to 15% within 24 hours

Unhappy with the Supreme Court’s decision, Trump announced to increase the global tariff from 10% to 15% the very next day. Trump signed orders imposing new tariffs on countries around the world. This 15% tariff came into effect from 24 February. Earlier, he also criticized judges who had ruled the tariffs illegal. Trump said, “I am ashamed of some of the judges on the court. They are an embarrassment to the country; they do not have the courage to do the right thing for our country.”

Comments are closed.