US pays back $100B in Trump tariff refunds
What's the story
The Trump administration has refunded nearly $100 billion in tariffs it collected before the US Supreme Court declared them illegal. The amount, which accounts for 60% of the total $165 billion collected from Donald Trump's "liberation day" tariffs, was reported by customs officials to the US Court of International Trade (CIT) on Tuesday.
Economic strategy
Trump's economic strategy heavily relies on tariffs
Since his return to office last year, Trump has heavily relied on tariffs as a major component of his economic strategy.
These taxes on imported goods are aimed at reviving domestic production, securing better trade deals, and reducing the federal budget deficit.
However, despite these efforts, the deficit has widened this fiscal year.
Legal challenges
Lawsuit filed against new levies
In February, the US Supreme Court struck down a portion of the additional tariffs imposed by Trump, forcing the government to refund companies that had paid them.
This week, a 25-state coalition has sued the Trump administration over new forced-labor tariffs levied under Section 301 of the 1974 Trade Act.
The lawsuit alleges the administration is using anti-forced-labor measures as a pretext to reinstate import taxes struck down by the Supreme Court in February.
Tariff disputes