Court orders refunds of reciprocal tariffs
A US international trade court has ordered the government to return more than Rs 12 lakh crore collected through reciprocal tariffs, calling the levy unlawful. The ruling directs that refunds to importers should begin.
Background to the dispute
After taking office for a second term in January last year, President Donald Trump imposed steep reciprocal tariffs on several countries, citing the trade deficit. The move drew sharp criticism from other nations and also triggered opposition within the US.
Supreme Court had struck down the tariffs
Opposition-led states and local traders had approached the US Supreme Court, which ruled that the President cannot impose such taxes on other countries without Parliament’s approval. The court struck down the reciprocal tariffs, but did not provide detailed guidelines on how refunds should be processed, leading to uncertainty among importers.
Importers seek a common repayment mechanism
More than 300,000 importers—many of them small business owners—had paid under the tariff regime, and nearly 2,000 cases were filed seeking refunds. The Manhattan-based US international trade court said a common mechanism should be created so all affected importers can receive repayments more easily, and asked the government to outline an action plan for returning the collected amount.
