US refunds billions from Trump's 'liberation day' tariffs after court ruling

The Trump administration has refunded about $100billion to businesses after the US Supreme Court ruled parts of President Donald Trump's "liberation day" tariffs were unlawful, according to the Financial Times.

Citing customs officials' filings to the US Court of International Trade (CIT), FT reported that the refunds account for about 60 percent of the $165billion collected under the tariffs.

The Supreme Court struck down a portion of the levies in February, requiring the government to repay companies that had paid the duties.

Tariffs have been central to Trump's economic agenda, with the president arguing they would boost domestic manufacturing, secure stronger trade deals and reduce the federal budget deficit.

Last month, the administration introduced a new round of tariffs on more than 80 countries, with rates ranging from 10 percent to 12.5 percent.

THe duties were imposed under Section 301 of the Trade Act of 1974, which targets countries linked to forced labour.

However, a coalition of 25 US states has filed a lawsuit challenging the new tariffs, arguing they are an attempt to replace import taxes previously struck down by the Supreme Court.

The states are asking the CIT to block the levies and order further refunds.

New York Attorney General Letitia James criticised the move, saying the Trump administration was "once again trying to illegally raise taxes on families and businesses with a new round of tariffs".