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Judge Rules Companies Can Reclaim Billions in Trump Tariffs

3/8/2026

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Judge Rules Tariff Reclamation

A federal judge ruled U.S. companies can reclaim tariffs imposed by U.S. President Donald Trump under IEEPA, deemed unconstitutional by Supreme Court.
Judge Richard Eaton's decision allows importers to reclaim billions in duties, with exposure up to $175 billion.
The ruling followed a lawsuit by Atmus Filtration.
Trump has introduced tariffs under Section 122 of the Trade Act, and more than 20 states challenge them as violating separation of powers.

Right

New Jersey Sues Trump

New Jersey joined more than 20 states in a lawsuit against U.S. President Donald Trump over tariffs, arguing they exceed authority under Section 122 of the Trade Act.
Attorney General Jennifer Davenport says the tariffs will raise costs for families and businesses amid an affordability crisis.
U.S. Customs and Border Protection plans to refund about $166 billion for tariffs deemed unconstitutional, but needs more time to implement a system.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised tariffs on over 20,000 goods, increasing the average tariff rate from 40% to nearly 60% by 1932. This act intensified the Great Depression by provoking retaliatory tariffs and reducing international trade, with U.S. imports falling by over 40% in two years. Judge Richard Eaton's recent ruling on tariffs echoes this historical precedent, highlighting ongoing debates about trade policy.

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Judge Rules Tariff Reclamation

A federal judge ruled U.S. companies can reclaim tariffs imposed by U.S. President Donald Trump under IEEPA, deemed unconstitutional by Supreme Court.
Judge Richard Eaton's decision allows importers to reclaim billions in duties, with exposure up to $175 billion.
The ruling followed a lawsuit by Atmus Filtration.
Trump has introduced tariffs under Section 122 of the Trade Act, and more than 20 states challenge them as violating separation of powers.

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