In a significant development, the US Supreme Court on Friday ruled that President Donald Trump violated federal law when he unilaterally imposed sweeping tariffs on several countries, marking a major setback to Trump’s aggressive trade policies with wide-ranging implications for the global economy.
Companies have collectively paid billions in tariffs to the US government. Associated Press reported that several companies, including warehouse chain Costco, have already lined up for refunds in court. It said dissenting judge Brett Kavanaugh noted that the refunds process could be complicated.
"The Court says nothing today about whether, and if so, how, the Government should go about returning the billions of dollars that it has collected from importers. But that process is likely to be a 'mess', as was acknowledged at oral argument," Justice Kavanaugh wrote in the dissent note.
India was among the first countries affected by Trump's "reciprocal" tariffs announced on April 2, 2025. With the punitive tariffs imposed for buying Russian oil, the rate reached 50%, which was the highest faced by any country. It was only in January this year that Trump announced that the tariffs would be brought down to 18% as India and the US finalised a trade deal.