Trump Admin Issues $100B Tariff Refunds as States Sue Over New Duties

In a move that follows the Supreme Court's ruling in February, the U.S. government has begun issuing refunds totaling around $100 billion on tariffs that were struck down. This represents roughly 60 percent of the $166 billion estimated to have been paid by businesses on President Donald Trump's now-defunct global tariffs, which the Supreme Court deemed unlawful.

U.S. Attorney General Rob Bonta criticized the administration for attempting to raise the cost of living for Americans, calling it the third time the administration has tried to illegally impose tariffs. California's Attorney General stated that the forced labor justification used for the new tariffs is a "pretext" for imposing the same tariffs deemed illegal in February.

The new tariffs, imposed by the Trump administration, target countries with inadequate bans on importing goods produced with forced labor. The administration argues that these countries lack effective measures to combat forced labor in their supply chains. Twenty-five states have now filed a lawsuit to block these new duties, arguing that they are a direct replacement for the previously invalidated tariffs.

U.S. Customs and Border Protection stated that the new tariffs are targeting countries that lack effective bans on importing goods produced with forced labor.

The administration has agreed to return the refund amount to American businesses, with interest, but is seeking to avoid rebates for certain entries. International trade experts noted that not every importer applied for a rebate, and some companies may have gone bankrupt during the tariff period and thus not requested their refund. Despite the relatively smooth refund process, experts were taken aback by the speed at which the administration is paying out the rebates compared to historical major refund actions.