U.S. federal court: 'Refund reciprocal tariffs to companies'

Possibility of rebates for Korean exporters

Trump administration expected to appeal

The U.S. Court of International Trade (CIT) ordered the administration to begin procedures to refund to businesses the reciprocal tariffs that the Supreme Court deemed invalid. The court specified that all U.S. importers are eligible for tariff refunds. If the decision is finalized, Korean exporting companies are also expected to be able to receive refunds of a substantial amount of tariffs.

According to foreign media including The Wall Street Journal (WSJ) on the 4th (local time), the CIT on that day ordered the Trump administration to begin procedures to return to importers the reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA) that the U.S. Supreme Court invalidated. The CIT is a federal court that exclusively handles civil litigation related to tariffs and trade.

The order was issued during a hearing on a refund lawsuit filed by a filter manufacturer headquartered in Nashville, Tennessee. Under the order, U.S. Customs and Border Protection (CBP) must recalculate and refund the tariffs importers originally paid, excluding the tariffs the Supreme Court found invalid. The ruling stated that "all importers are entitled to the benefit of the Supreme Court decision that tariffs based on the IEEPA are unlawful."

There are currently more than 2,000 lawsuits filed by global companies demanding tariff refunds. Major U.S. companies such as Costco and FedEx have also joined suits seeking tariff refunds. According to the CBP, tariffs collected under the IEEPA totaled about $134 billion by the end of last year.

The Trump administration is expected to appeal to block the ruling from taking effect.

The CIT’s refund order is a follow-up step to last month’s Supreme Court decision invalidating the reciprocal tariffs and fentanyl tariffs imposed by the Trump administration under the IEEPA. At the time, the Supreme Court did not provide clear guidance on how already-collected tariffs should be handled.

Following this ruling, Korean companies are expected to seriously review refund procedures. According to the Korea Customs Service, an importer may formally contest the relevant tariffs within 180 days after tariff liquidation is completed. After this period, the liquidation becomes legally final. Under the law, the party that can claim a tariff refund from the CBP is the U.S. importer that paid the duties.

However, if exports were made under Delivered Duty Paid (DDP) terms—where the exporter bears the duties on behalf of the importer—a refund can be claimed directly. The number of companies that exported goods to the U.S. under DDP terms is estimated at about 6,000 out of roughly 24,000 companies in total (25%).

By Lee Gwang-sik bumeran@hankyung.com