US judge orders Trump to return billions from illegal tariffs to importers

Federal judge Richard Eaton, of the United States Court of International Trade (CIT), ordered Donald Trump’s government to return billions in tariffs considered illegal by that country’s Supreme Court last month.

For the Supreme Court, Trump exceeded his authority, as the power of taxation belongs exclusively to Congress, but he did not decide on reimbursement.

The measure affects products from almost all countries, including Brazil. According to the Penn Wharton Budget Model study center, reimbursement could reach US$175 billion. By December, the North American government had raised US$ 130 billion from tariffs.

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Judge Eaton reinforced that “all registered importers” are entitled to benefit from this verdict.

The judge made the decision based on the case presented by Atmus Filtration, a company in Nashville, Tennessee, that manufactures filters and other filtration products.

Experts interviewed by the Associated Press believe that the government will try delaying maneuvers.

Ryan Majerus, from King & Spalding, says the government should appeal or “request a suspension to buy more time for Customs to comply with the determination”.

On the other hand, free trade advocates celebrate. Barry Appleton, law professor at New York Law School, said: “This is a great decision for importers and consumers who have paid. It should make things easier for the courts — and get processes underway for those importers who have paid in the last 180 days.”

Despite the defeat, the Trump administration has already imposed a new global tariff of 10% (which could rise to 15%) based on Section 122 of the 1974 Trade Act. More than 20 states led by Democrats are already challenging the measure in court.

“The focus now should be on reimbursing people, not insisting on illegal fees,” says Oregon Attorney General Dan Rayfield, one of the leaders of the lawsuit.