The U.S. has collected billions in tariffs. But a court ruling could change everything.

Lower courts found Trump’s tariffs unlawful, and if the Supreme Court agrees, importers could receive refunds.

In today’s episode:

Businesses are watching closely, hopeful that a court ruling could turn billions in Trump’s tariffs into refunds.

On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit ruled that President Trump exceeded his authority by imposing sweeping tariffs on countries including China, India, and Brazil.

The court found that President Trump used the International Emergency Economic Powers Act (IEEPA), a 1977 law meant for national security threats, to justify massive tariffs on major trade partners.

Treasury Secretary Scott Bessent confirmed publicly that if the Supreme Court agrees that the tariffs are illegal, the U.S. government would be required to refund about half of those tariffs. “If the court says it, we’d have to do it,” he said.

The court has allowed the tariff to remain in effect and granted the Trump administration until October 14, 2025, to ask the Supreme Court to review the case.

What happens next?

The Supreme Court will hear the case this fall. Experts don’t expect this ruling to end reciprocal tariffs, as Trump could use other laws to keep them in place. It won’t change the de minimis suspension, and importers will pay their duties as usual. However, if the Supreme Court denies the appeal, the ruling will fully apply, possibly requiring the U.S. Treasury to refund billions collected.

Businesses may receive refunds, but it could be a complicated process. The government might choose to refund all affected importers, limit refunds only to those who joined the lawsuit, or require importers to file claims through a formal process.

Timeline to watch:

Jessica Kriegel of Culture Partners and John Frehse, a trade and policy expert, discussed what happens if the tariffs are ruled illegal, and why it matters for supply chains, costs, and jobs. Hear their insights in the CEO Daily Brief podcast.

🇺🇸 New Executive Order Revises U.S. Reciprocal Tariffs. President Trump’s Sept. 5 executive order (EO) updates reciprocal tariffs, effective Sept. 8, changing exemptions and adding the PTAAP framework. Importers must follow CBP guidance, classify goods correctly, and adjust filings to comply with the new rules.

🚨 CBP Highlights Illegal Transshipping Red Flags. CBP warns illegal transshipping bypasses U.S. duties, targeting steel, electronics, textiles, and agriculture. Importers must watch origin labels, routing, and discrepancies, maintain supplier checks, and report suspicious activity to CBP.

🤝 Trump Issues EO to Enforce $550 Billion U.S.–Japan Trade Deal. On September 4, 2025, President Trump signed an Executive Order enforcing the $550 billion U.S.–Japan trade deal. CBP issued interim guidance advising importers to await instructions before filing tariff refund claims.

📥 CBP Adds 10 More Providers to Handle Postal Duties. U.S. CBP approved Flexport and nine others, joining Zonos and SafePackage, to collect and remit duties on international postal shipments. This expands options for carriers complying with new duty rules after the de minimis exemption ended.

Maria Robinson, owner of B. Stuyvesant Champagne, shares how the ongoing tariff changes affect her small business. She’s hopeful that the Supreme Court’s ruling is the start of change in trade policy.

Have you ever thought about what would happen if global trade suddenly stopped? Find out here! 👇

On August 28, 2025, the European Commission proposed a regulation to pause tariffs on U.S. industrial goods, providing stability while the full EU–US trade deal is finalized. It uses existing EU rules of origin to decide which products qualify during this transition.

This matters because these familiar rules are just the starting point: future changes will introduce stronger, more precise rules of origin designed to support key industries like steel and automotive. And this will make the trade relationship smarter and more resilient!

Insights from Alexandre Lira, Co-Founder of TCE Pro

CBP’s updated factsheet on 2025 tariff requirements provides a clear, high-level overview of critical tariff rates and dates under IEEPA and Section 232. It’s a must-have reference to stay on top of the changing trade policies.