The most steep tariff of President Donald Trump fell into the legal limbo this week, giving uncertainty over the main plot of the president’s signature economic policy.
Trump’s government was finally able to win in a court battle for levies or seek other legal authority to re -enforce several tariffs, experts told ABC News, but the full resurrection of the policy now faces great obstacles.
Two separate federal courts canceled the extensive levies in the State dozen launched in the Mawar Garden Ceremony, nicknamed Trump “Liberation Day.” The decision also hit 30% of the tariffs charged in China and 10% baseline levies slapped in almost all imports, among other steps.
The federal appeal court is temporarily returning the tariff on Thursday afternoon, however, maintaining levies remains in place while the judge considers the underlying legal justification.
This is what must be known about what is next to Trump tariffs and what happens to the tax revenue that has been paid, according to experts.
High -risk court battles
This week’s court decision triggered a legal battle on tariffs that could stretch for more than a year and head to the Supreme Court, experts told ABC News.
Decisions on levies in two Federal Courts – US International Trade Courts and US District Courts in Washington, DC – centered on Trump’s requests that have never occurred before on the International Economic Emergency Strength Law as a legal justification for tariffs.
The 1977 law enabled the president to stop all transactions with foreign enemies which are threats, including the use of tools such as sanctions and trade embargoes. But the action did not explicitly allow tariffs, placing Trump in the jurisdiction that has not been tested.
“This is an important action to reverse the big initiative of the President of the United States,” Alan Wolff, former Deputy Director General of World Trade Organizations, told ABC News. “That’s really a loss for the White House.”
Temporary recovery tariff allows policies to continue when the legal battle is played, but the decision does not show how the judge will consider the benefits of the case, Wolff added.
“That did not change the situation in that many courts,” Wolff said. “I’m sure the White House wants this to be straightened as soon as possible.”
In a social media post, Trump slammed the judges in the US International Trade Court and heralded the benefits of the tariff policy.
“Where did these three initial judges come from? How could they have the potential to do such damage to the United States? Is it purely hatred of ‘Trump?’ What is the reason? “Trump said.
The panel of three judges in the US International Trade Court included a judge appointed by Ronald Reagan, one judge appointed by Barack Obama and one judge appointed by Trump himself.
Trump added: “In this case, only because of the success of using my tariffs many trillions of dollars have begun to flow to the United States from other countries, money that, without this tariff, we will not be able to get it. This is the difference between having a rich, prosperous, and successful United States, and vice versa.”
On Wednesday, US tariffs have generated around $ 68 billion in revenue so far this year, although only a portion of the funds owed on levies is at risk of being affected, according to A Politico analysis.
The duration of legal battle may depend on the decisions revealed from the two appeal courts that handle each Trump administrative challenge, Patrick Childress, a former trading official under President Joe Biden and Trump, told ABC News.
If two appeal courts have dropped the opposite decision, it will increase the possibility that the case will take more than a year and eventually reach the Supreme Court, Childress said. But, he added, a pair of similar decisions at the court of appeal could accelerate the resolution of this case.
For now, the fate of tariffs in question is still very unclear, even after the appeal court while returning it, Childress added.
“There is still a very similar amount of uncertainty,” said Childress.
The trucks carrying containers lined up at the Ningbo-Zhoushan Port in Ningbo, China, May 28, 2025.
Retamal Hector/AFP Via Getty Images
New tariffs can attract other legal authority
If the court eventually decides on Trump’s tariff, the White House can explore other legal authority as a way to revive several levies, experts said.
However, in some cases, alternative laws will require an investigation that takes time in a federal institution and limits the scope of levies.
Section 301 of the 1974 Trade Law allows the executive to request temporary tariff authority in response to adverse trade policies taken by other countries.
Trump tariffs on large plots of Chinese goods during their first term of office were relied on in section 301, which Biden was called to serve its own tariffs.
The White House can use section 301 to re -apply tariffs in Mexico, Canada and China for the role of each country in transporting Fentanyl to the US, said Childress. But the broad prayer of section 301 for tariffs on the State dozens can lead to administrative challenges, because every use of these actions requires a federal investigation of alleged violations, he added.
“It’s impossible but it will require a lot of investigation,” Childress said.
Trump administration considers the use of separate provisions from the 1974 trade law to impose a special state tariff up to 15% for 150 days, it Wall Street Journal reported.
The White House can also expand the use of Article 232 of the 1962 trade expansion law, which allows the executive to impose tariffs on certain products if the Ministry of Trade considers foreign production as a threat to national security.
Trump has requested the step to slap the 25% tariff on cars, steel and aluminum. Special tariffs of additional sectors can achieve pharmacy and semiconductor chips, according to the latest comments from Trump.
Companies can receive tax returns
Importers who have paid the tariff in question will receive a refund of government money if levies are victims of legal challenges, experts told ABC News.
“The company must get money back if it’s the result – and that’s a lot of money,” Wolff said.
The federal government is likely to slow down the issuance of refund until the legal cases are resolved, said Childress.
“Importers who make payments can see one or even two years until the refund is paid,” added Childress.
When looking for a refund, the company needs to provide detailed information about their imports, the date of delivery and where the product enters the US
“All information is needed to get further refunds,” Childress said.