US Trade Levy Rollback: Businesses Face Refund Fights and New Tariffs
The recent trade levy rollback has brought mixed relief to businesses across the United States. Many firms welcomed the court decision. However, fresh duties and refund disputes now create new concerns. In addition, companies must prepare for legal claims to recover past payments. These challenges may stretch over several months. As a result, planning future imports could become harder.
Refund Battles Likely to Continue
The top court declared earlier tariffs unlawful. Still, it did not decide how companies will receive refunds. Therefore, lower courts must now handle each claim. For example, the US Court of International Trade will likely oversee refund cases. Importers must file lawsuits individually to get their money back. This process has already begun for many firms. Meanwhile, former president Donald Trump expects the legal fight to last several years.
New Duties May Increase Market Volatility
Soon after the ruling, officials proposed a new 10 percent duty on imports. This move may act as a short term solution. However, it could trigger more trade tensions. Authorities plan to use the Trade Act of 1974. Yet, the law allows duties for only 150 days unless Congress approves an extension. Therefore, businesses may face more policy changes ahead. Experts at the Atlantic Council believe the ruling starts another phase in tariff strategy. Companies must now manage greater uncertainty in trade deals.
Trade Deals Could Shift
Some global partners may rethink ongoing agreements. Others might stay committed to avoid further instability. For instance, the Asia Society Policy Institute expects most countries to maintain current deals. Walking away may worsen their position in future talks. Nevertheless, countries still negotiating agreements could gain more bargaining power.
Data from Yale University suggests average tariff rates could drop to 9.1 percent. Previously, the rate reached 16.9 percent. Even so, future policies may bring lasting duties. Analysts expect a reset in trade rules. This change may lead to more stable and lower tariff rates.
