Judge rules companies entitled to refunds for Trump tariffs overturned by SCOTUS

"Judge Richard Eaton of the U.S. Court of International Trade wrote that "all importers of record'' were "entitled to benefit'' from the Supreme Court ruling that struck down sweeping double-digit import taxes President Donald Trump imposed last year under the 1977 International Emergency Economic Powers Act (IEEPA)."

"The Supreme Court found those tariffs to be unconstitutional under the emergency powers law, including the sweeping "reciprocal" tariffs he levied on nearly every other country. The majority ruled that the president could not unilaterally set and change tariffs because taxation power clearly belongs to Congress."

"The federal government collected more than $130 billion in the now-defunct tariffs through mid-December and could ultimately be on the hook for refunds worth $175 billion, according to calculations by the Penn Wharton Budget Model."

A federal judge in New York ruled that companies paying tariffs invalidated by the Supreme Court last month are entitled to refunds. The Supreme Court previously found President Trump's tariffs unconstitutional, determining that taxation power belongs to Congress, not the president. Judge Richard Eaton stated that all importers of record are entitled to benefit from this ruling and will personally hear refund cases. The federal government collected over $130 billion in these tariffs through mid-December, with potential refund obligations reaching $175 billion according to budget model calculations. The ruling provides clarity on the refund process that the Supreme Court's decision did not address, though the government is expected to appeal or seek a stay.

Read at ABC7 Los Angeles