U.S. importers still paying Trump's illegal tariffs even after Supreme Court ruling - CNBC

U.S. importers are continuing to pay billions of dollars in tariffs imposed by the former Trump administration, despite a recent decision by the Supreme Court not to hear a challenge to their legality. This means that duties on imported steel and aluminum under Section 232 of the Trade Expansion Act of 1962, as well as tariffs on a vast array of Chinese goods under Section 301 of the Trade Act of 1974, remain in full effect, with no refunds expected for past payments.

The tariffs in question include a 25% duty on steel imports and a 10% duty on aluminum imports, both implemented in 2018 under Section 232. Additionally, Section 301 tariffs, also initiated in 2018, apply to hundreds of billions of dollars worth of goods from China. While the Biden administration has recently conducted a review of the Section 301 tariffs, leading to increases on specific categories like electric vehicles, solar cells, and medical supplies, the core tariffs continue to impact a wide range of products and industries across the United States.

The legal challenge primarily focused on the Section 232 tariffs, specifically in the case of Transpacific Steel LLC v. United States. Importers argued that these tariffs were imposed after a statutory deadline, rendering them unlawful. Initially, the U.S. Court of International Trade (CIT) sided with the importers in 2020. However, this decision was overturned in 2022 by the Court of Appeals for the Federal Circuit (CAFC), which ruled that the tariffs were lawfully imposed. In June 2024, the Supreme Court declined to hear the appeal, effectively upholding the CAFC's ruling and cementing the legality of the Section 232 tariffs. This Supreme Court decision also has significant implications for the Section 301 tariffs, as similar legal arguments regarding their imposition were made.

Given the Supreme Court's decision, importers should understand that these tariffs are firmly in place and compliance with payment obligations is mandatory. While the prospect of refunds for past Section 232 tariff payments is now effectively closed, importers should continue to explore other avenues for potential relief. This includes advocating for product-specific exclusions, participating in any future administrative reviews of the tariffs, or engaging with legislative efforts aimed at tariff reform. Trade compliance officers and customs brokers should advise their clients to monitor ongoing developments closely and ensure their import strategies account for these persistent trade measures.