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A U.S. federal trade court judge has mandated the Trump administration to expedite refunds for $130 billion in tariffs recently invalidated by the Supreme Court. The order, issued by Judge Eaton, requires immediate action and updates by Friday, rejecting the government’s request for a pause during appeals. Over 2,000 lawsuits from companies like Costco and FedEx are pending, with the Customs and Border Protection (CBP) facing logistical challenges in processing refunds for millions of import entries. The judge emphasized modernizing procedures, stating, 'We live in the age of computers.' This decision could inject significant liquidity into the U.S. economy, acting as a stimulus by returning funds to importers. Traders should monitor the USD’s reaction, as the refund process may boost economic activity and consumer spending. The ruling also pressures the administration to resolve the legal battle swiftly, with potential ripple effects on global markets, particularly trade-dependent sectors. For MENA investors, the outcome highlights the interconnectedness of U.S. economic policies and global trade flows. The accelerated refund timeline could influence commodity prices and multinational corporations’ earnings. Key watchpoints include the Friday hearing for procedural updates and the administration’s appeal strategy. The decision’s long-term impact on U.S.-China trade relations and inflationary pressures will also shape market sentiment.
