A US trade court has ordered the government to begin refunding billions of dollars in tariffs collected under an emergency powers law, after the country’s top court struck down the duties last month. The ruling could reshape global trade flows and offer relief to exporters worldwide, including those in India that were hit by the controversial tariff regime.
The US Court of International Trade on Wednesday directed Customs and Border Protection to issue refunds for tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Judge Richard Eaton said all eligible importers must benefit from the ruling by the US Supreme Court.
While the order confirms companies’ right to refunds, the mechanism for returning the money remains unclear. The decision represents a setback for Donald Trump, whose administration had introduced the tariffs and later warned that large-scale refunds could follow if the policy was overturned.
The tariffs have generated an estimated $130 billion for the US government from duties on a wide range of imported goods.
Meanwhile, US the administration is considering a new tariff regime to replace the invalidated duties. US Treasury Secretary Scott Bessent said Washington was “likely” to introduce a 15 percent global tariff this week, up from the previously discussed 10 percent rate.
The proposed levy is intended to replace the IEEPA tariffs that the Supreme Court struck down.
The ruling could have wider implications for global trade. If large-scale refunds are issued, importers in the US may recover billions of dollars, improving corporate cash flows and potentially lowering the cost of imported goods.
The decision also raises questions about the use of emergency powers to impose sweeping tariffs, which many trade partners had criticised as unpredictable and disruptive to global supply chains. With the duties struck down, exporters from Asia and Europe could see improved market access to the US in the short term.
However, uncertainty remains as the Trump administration moves to introduce a new global tariff structure, which could again alter trade dynamics.
For India, the ruling could provide indirect relief to exporters in sectors such as engineering goods, auto components, chemicals, textiles and pharmaceuticals that rely heavily on the US market.
If importers receive refunds for tariffs paid on Indian goods, it could ease pricing pressures and revive stalled orders from US buyers. The US is India’s largest export destination, accounting for more than $75 billion in annual shipments.
At the same time, the possibility of a new 15 percent global tariff proposed by the US administration could create fresh challenges for Indian exporters if implemented.
Trade experts say the court decision may also strengthen the position of countries, including India, in ongoing negotiations with Washington over tariffs and market access.
