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The U.S. government has begun refunding a portion of the $166 billion in tariffs collected under the International Emergency Economic Powers Act (IEPA) after the Supreme Court ruled them illegal.
U.S. Customs and Border Protection (CBP) has informed the Court of International Trade that it has approved over $35 billion in tariff refunds to U.S. importers.
Following a Supreme Court ruling against IEPA tariffs, the Trump administration imposed a new 10% global import tariff on nearly all goods under Section 122.
A group of U.S. importers and more than 20 states filed a lawsuit with the Court of International Trade to challenge the legality of the Section 122 tariffs.
The Court of International Trade ruled that Section 122 did not authorize the 10% global tariff imposed by the Trump administration, ordering the U.S. to cease its collection from the plaintiffs.
The U.S. Court of Appeals for the Federal Circuit granted the government's request to pause the Court of International Trade's order, allowing the collection of Section 122 tariffs to continue during the appeal.
The Trump administration is pursuing more permanent tariff authorities, such as Section 301 and Section 232, to replace the temporary Section 122 tariffs.
The Trump administration may impose new tariffs under Section 301 as early as July, coinciding with the expiration of the Section 122 tariffs.
The Court of International Trade's ruling against Section 122 tariffs was based on the legal framework established by the Supreme Court case Loper Bright, which struck down the Chevron deference doctrine.
U.S. Customs and Border Protection (CBP) is processing and issuing tariff refunds faster than its initial estimate of 60 to 90 days.
The Section 122 tariffs are a temporary measure, time-limited to 150 days and set to expire in July.
The U.S. has maintained Section 301 tariffs on goods from China since 2018, a policy continued by the Biden administration.