US refunds $100bn of Donald Trump’s ‘liberation day’ tariffs

The Trump administration has refunded approximately $100 billion from the tariffs it collected before the US Supreme Court ruled them illegal, according to customs officials reporting to the US Court of International Trade (CIT). This refund represents 60% of the total $165 billion collected from Donald Trump's "liberation day" tariffs.

Tariffs have been a crucial component of Trump's economic strategy since he returned to office last year. However, in February, the Supreme Court struck down a portion of the additional tariffs imposed by Trump, prompting the government to return money to the businesses that had paid them. Trump has advocated for tariffs as a means to bolster the US economy, promote domestic production, secure improved trade deals, and reduce the federal budget deficit.

Despite this, the deficit has increased from $1.34 trillion in the first nine months of the fiscal year last year to $1.37 trillion in the same period this year, marking a 2% rise. In recent months, Trump has introduced new tariffs targeting over 80 countries, ranging from 10% to 12.5% on various nations including the UK, Mexico, Canada, Australia, India, China, and the 27 member states of the European Union.

These tariffs, implemented under section 301 of the Trade Act of 1974, aim to counteract countries that engage in forced labor practices. Recently, a coalition of 25 US states initiated legal proceedings against the Trump administration, accusing the tariffs of being a strategy to replace previously invalidated import taxes. The states have requested the CIT to halt the tariffs, deem them unlawful, and order refunds for duties already paid.

The states contend that the tariffs imposed on 59 countries and the EU cover 99.4% of US imports. Administration officials have maintained that the countries have failed to effectively combat products produced through forced labor. Governor Letitia James of New York criticized the Trump administration for attempting to "illegally raise taxes on families and businesses with a new round of tariffs" following their loss at the Supreme Court in February.