Trump’s tariffs struck down as refund claims loom

The U.S Supreme Court ruled on the 20th February that the president did not have authority to impose sweeping tariffs on general imports, removing the so-called “reciprocal” tariffs, including the duties applied to EU and UK exports.

In response, President Trump’s administration introduced a 10% global import surcharge under Section 122 of the Trade Act. The president indicated that he would raise the rate to the maximum, but the new global tariffs came into effect on the 24th November at 10%.

The change creates a dual reality of new tariffs introduced under a different law, while previously collected duties may now be recoverable through complex customs procedures and litigation.

Emergency tariffs invalidated

The court determined that tariffs represent taxation and therefore require Congressional approval. The International Emergency Economic Powers Act (IEEPA) allows regulation of trade during emergencies but does not explicitly authorise duties. As a result, tariffs imposed solely under that statute are no longer legally supported.

This ruling potentially opens the door to large-scale repayment claims. The administration has indicated that legal challenges may continue for years, with businesses expected to pursue more than $200bn in refunds linked to the invalidated measures.

However, the judgment does not end U.S. tariffs. It simply restricts how they are introduced.

Existing programmes remain fully active:

• Section 301 tariffs addressing unfair trade practices
• Section 232 national security tariffs
• Section 201 safeguard measures

Replacement tariff: temporary global surcharge

In response, the government introduced a 10% global import surcharge under Section 122 of the Trade Act. Unlike the emergency tariffs, this mechanism is legally constrained:

• Maximum duration: 150 days (unless Congress extends it)
• Maximum rate: 15% (currently set at 10%)
• Purpose: short-term balance-of-payments stabilisation

The UK is still seeking clarity on whether it will be among the countries worst hit by the 15% global tariff, because it had previously negotiated a 10% tariff deal. However, the "majority" of the UK-US deal, such as the tariffs on cars, steel, and pharmaceuticals is not expected to change.

Meanwhile, the EU put its US tariff deal on hold, as President Trump warned that countries that "play games" will face even higher tariffs.

Refund recovery becomes critical

The larger operational issue now concerns previously paid duties. Depending on entry status, recovery may involve:

• Post-summary corrections for unliquidated entries
• Formal protests within statutory deadlines
• Litigation at the Court of International Trade for older entries

Authorities have yet to publish full refund procedures, but documentation preparation is already essential. Importers should identify affected entries, confirm duty payments and coordinate any drawback claims to preserve recovery rights.

In practice, customs compliance is shifting from routine administration to financial risk management.

Support and guidance

Logicall is actively reviewing the decision, monitoring federal agency communications, and evaluating operational considerations related to entries and compliance strategy.

We recommend initiating an internal review of your affected entries now. Our U.S. customs brokerage specialists can help assess exposure, prepare documentation and advise on refund recovery pathways.

We will continue to provide updates as additional clarity becomes available.