U.S. begins repaying over $150bn to companies that paid tariffs

U.S. Customs and Border Protection began accepting tariff-refund claims in April after the Supreme Court struck down President Donald Trump’s sweeping import duties in a 6-3 ruling on Feb. 20. The agency is now processing claims tied to an estimated $166 billion in duties paid by more than 330,000 importers on over 53 million shipments, according to court filings and agency guidance. The refunds apply to tariffs Trump imposed under the International Emergency Economic Powers Act, or IEEPA, which the court said did not authorize the president to levy the taxes. The administration has since moved from collecting those duties to managing repayment, while new legal fights have opened over Trump’s replacement tariff plan. ### Who is actually getting the money back? Importers of record — not shoppers — are first in line for the refunds. A March ruling by Judge Richard Eaton of the U.S. Court of International Trade said all importers of record were “entitled to benefit” from the Supreme Court decision, giving companies a legal path to recover money paid on now-invalidated tariffs. AP reported that CBP’s portal launched April 20 and that approved claims were expected to be paid in 60 to 90 days, with the government prioritizing more recent tariff payments. (news.bloomberglaw.com) The Supreme Court did not itself decide how refunds should be handled. Bloomberg Law reported that the justices left the scope of repayment to lower courts, creating a second phase of litigation over eligibility and process even after the tariffs themselves were struck down. ### Why are state officials demanding names? Minnesota State Auditor Julie Blaha said on a May 14 press call that consumers had borne much of the cost through higher prices and should know which companies are receiving refunds. (nbcnews.com) Stateline reported that Blaha was one of eight Democratic state fiscal leaders urging the White House to disclose which firms are being repaid and to ensure consumers are not excluded from any relief. (news.bloomberglaw.com) Stateline also reported that there is no public database showing tariff-refund requests or agency decisions. Blaha said states had managed similar disclosure systems during the coronavirus pandemic and argued that the federal government already knew how to provide that level of oversight. ### Why haven’t shoppers seen obvious price relief? (stateline.org) More than $166 billion in refunds does not automatically translate into lower shelf prices because the money is being returned to the businesses that paid the duties at the border. AP reported that any reimbursements businesses choose to pass along to customers would likely move slowly because of technical delays, phased processing and the fact that some import costs had already been absorbed into contracts and retail pricing. (stateline.org) Stateline reported that many companies do not appear to plan to share the funds directly with consumers. Julie Blaha said, “We’re the ones who paid it,” referring to households that absorbed tariff-related price increases. ### What happened to Trump’s replacement 10% tariff? President Donald Trump said after the Feb. 20 Supreme Court ruling that he would impose a 10% global tariff using Section 122 of the Trade Act of 1974. (usnews.com) Bloomberg Law reported that the replacement levy was intended to sit on top of existing Section 232 and Section 301 tariffs. (stateline.org) On May 7, a divided three-judge panel of the U.S. Court of International Trade ruled that the 10% global tariff was unlawful and entered a permanent injunction for Washington state, Basic Fun and Burlap and Barrel. The court’s opinion said the tariff was “invalid” and “unauthorized by law,” though the relief was not extended to all importers or all states that sued. ### What happens next in the refund fight? (news.bloomberglaw.com) The Court of International Trade remains the key venue for refund disputes because Eaton said he would hear cases related to repayment of IEEPA duties. Trade lawyer Ryan Majerus told AP in March that he expected the government to appeal or seek more time for Customs to comply. CBP said approved refund claims would generally be paid within 60 to 90 days of approval, and the agency is processing cases in phases. (cit.uscourts.gov) Separate appeals or new suits over the May 7 ruling on the 10% global tariff would move through the federal trade-court system, with Washington state, Basic Fun and Burlap and Barrel already named in the current injunction. (usnews.com) (nbcnews.com)