U.S. Court Rules Against Tariffs Under Emergency Economic Powers Act

The U.S. Court of International Trade ruled on Wednesday that the Customs and Border Protection (CBP) cannot impose tariffs under the International Emergency Economic Powers Act (IEEPA). According to Ming Pao, this decision implies that tariffs previously collected under this act, including 'reciprocal tariffs' and fentanyl-related tariffs, must be refunded. Senior Judge Eaton stated in the ruling that all U.S. importers who paid tariffs under the IEEPA are entitled to the benefits of the Supreme Court's decision. Last month, on the 20th, the U.S. Supreme Court determined that the IEEPA does not authorize the President to impose large-scale tariffs. A model from the University of Pennsylvania's Wharton School estimates that the refunds could amount to $175 billion.