US Retailers Get $100bn Tariff Refund After Supreme Court Ruling

The refund does not end the tariff programme. The Trump administration introduced a replacement round of duties last month covering more than 80 countries, including the UK, China, India, Canada, Mexico, Australia and the EU. The new rates range from 10% to 12.5% and replaced a global 10% duty that was set to expire. They were imposed under section 301 of the Trade Act of 1974; the administration said the affected countries had not done enough to stop products made with forced labour.

A coalition of 25 US states has challenged the replacement tariffs in court. They argue the forced-labour justification is a pretext for reinstating duties the Supreme Court struck down. The states claim the measures cover 99.4% of US imports across 59 countries and the EU. They have asked the Court of International Trade to block the tariffs, declare them unlawful and order repayment of duties already collected.

For British retailers operating in the US, the replacement tariffs mean landed costs and pricing strategies remain uncertain. Companies must figure out whether any historical payments are eligible for refunds while assessing their exposure to the new duties. Supplier contracts need review to establish who acted as importer of record.

About $65bn of the original tariff income is still outstanding. With a replacement regime already facing a legal challenge, retailers continue to wrestle with uncertainty over sourcing costs, margins, inventory decisions and consumer prices.