Ford Motor Company is set to receive a $1.3 billion refund from the U.S. government following the Supreme Court's decision earlier this year to overturn certain tariffs implemented during the Trump administration.

The refund stems from tariffs that were imposed under the International Emergency Economic Powers Act (IEEPA) during former President Trump's tenure. The Detroit-based automaker had paid these tariffs on imported goods and materials used in its manufacturing operations.

The Supreme Court's ruling earlier this year determined that the specific tariffs in question were improperly implemented, paving the way for companies like Ford to recover the payments they made during the period when the tariffs were in effect.

Ford expects the $1.3 billion refund to provide a significant financial boost to the company's operations. The automaker, like many manufacturers, had absorbed substantial costs from the various trade measures implemented between 2017 and 2021.

The refund represents one of the larger individual recoveries stemming from the Supreme Court's decision to strike down the disputed tariffs. Other companies that paid similar duties during the same period may also be eligible for refunds, though the amounts and timing of such payments have not been disclosed.