The majority of the sweeping tariffs Donald Trump imposed during his second term face one final litmus test that will determine whether he can continue to levy them – and also whether businesses are eligible for massive refunds.
That potentially dramatic turn in the tariff saga comes after a federal appeals court ruled on Friday that Trump unlawfully leaned on the International Emergency Economic Powers Act (IEEPA) to impose across-the-board duties on countries.
Trump had used those powers to push import tax rates as high as 50% on India and Brazil – and as high as 145% on China earlier this year.
I doubt the importers will be refunded. Obviously if they were, 90%+ will not refund their customers because why would they? I can imagine class action lawsuits down the road, but honestly I predict the supreme court will overturn any lower court rulings and let him tariff away, saying it’s the congress’s job to reign him in since “it’s their prerogative” or some such, in a 6-3 ruling. If they wanted to stop the tariffs, the majority will argue, they could simply cancel them.
I obviously grasp the injustice, but I can’t imagine what the basis of a class action would be. If you agree to buy a product for $5 and they supply said product, the courts aren’t going to care if their cost for it was $4 or $2. There is no constitutional right to suppliers with low profit margins.
If there was a tariff fee in the invoice, there would be standing.