Trump Administration Issues $100 Billion in Tariff Refunds as 25 States Challenge New Duties

US, Aug 06 : The Trump administration has refunded nearly $100 billion to American importers after the US Supreme Court struck down its earlier global tariff policy. However, the trade issue has taken a new turn, with 25 US states filing a fresh lawsuit against a revised set of import duties introduced by the White House.

Court documents submitted to the US Court of International Trade, and cited by the Financial Times, reveal that approximately 60% of the estimated $166 billion collected under the invalidated tariffs has already been repaid. The Supreme Court ruled in February that President Donald Trump had exceeded his authority by imposing the tariffs under the International Emergency Economic Powers Act (IEEPA).

Although the refunds are underway, the legal battle is far from over. A coalition of states argues that the administration’s newly introduced tariffs are effectively a replacement for those already declared unlawful by the nation’s highest court.

The White House has defended the new measures, stating that the revised duties are intended to pressure countries that have failed to eliminate forced labour from their supply chains. Officials insist the policy is based on human rights concerns rather than the earlier emergency powers used to justify the previous tariffs.

State attorneys general disagree with that explanation. Leading the challenge, New York Attorney General Letitia James accused the administration of attempting to restore tariffs through a different legal route after losing before the Supreme Court. She argued that the new duties would once again increase costs for American families and businesses.

The US Customs and Border Protection (CBP) acknowledged that the legal challenge has been filed and said the agency is aware of the ongoing proceedings. According to CBP, the latest tariff framework specifically targets countries lacking effective safeguards against goods produced through forced labour.

Court filings indicate that more than 330,000 importers paid duties on over 53 million shipments under the earlier tariff programme. The administration has agreed to return those payments with interest, although experts believe not every importer will ultimately receive a full refund because of ongoing disputes over certain claims.

Trade analysts have expressed surprise at the speed of the repayment process. Earlier this year, Treasury Secretary Scott Bessent suggested that processing reimbursements could take months or even years. Instead, customs authorities have already moved a significant portion of the claims through the system.

According to the Financial Times, CBP has confirmed that more than $128 billion in refund requests have already been accepted for processing, indicating that additional repayments are expected in the coming months even as the courts prepare to examine the legality of the administration’s latest tariff policy.