U.S. faces $149B tariff refund

The Supreme Court’s February 20 ruling against Donald Trump’s emergency tariffs did not settle the biggest practical question left behind by the policy: who gets the money back, and how. In a 6-3 decision in Learning Resources, Inc. v. Trump, the court said the International Emergency Economic Powers Act did not authorize the president to impose the duties that had been levied on imports from China, Canada, Mexico and many other trading partners. U.S. Customs and Border Protection has since begun processing refund claims, and private lawsuits are now testing what happens when tariff costs were passed through supply chains and into consumer prices. Trump said after the ruling that the government may need to return $149 billion in tariff revenue, while other trade and legal analyses have put the potential total higher. (supremecourt.gov) ### Which tariffs did the court actually strike down? Chief Justice John Roberts wrote for a six-justice majority that IEEPA does not give the president authority to impose tariffs. The case covered both the “fentanyl” tariffs aimed at imports from Canada, Mexico and China and the broader “reciprocal” tariffs that applied a baseline duty of at least 10% on imports from all trading partners, with higher rates for dozens of countries. (skadden.com) The Supreme Court’s syllabus said Trump had declared national emergencies tied to drug trafficking and trade deficits, then used IEEPA to impose duties in response. The justices held that the statute’s power to “regulate” importation did not authorize tariffs. ### How large is the refund problem? U.S. Customs and Border Protection said in April that the first phase of its refund platform was operational and that more than 330,000 importers could qualify for reimbursements tied to more than 53 million shipments. (supremecourt.gov) The agency’s initial electronic rollout covered about $127 billion in duty payments, according to Times of India’s account of the agency announcement. Trump said the government may have to refund $149 billion, according to the source briefing for this story. Thomson Reuters Tax & Accounting said the ruling could unlock about $175 billion in refunds, while Times of India reported an estimate of about $166 billion. Those differing figures reflect the uncertainty around which entries qualify, how claims are documented and whether interest is included. (timesofindia.indiatimes.com) ### Why did the fight move from trade policy to paperwork? Skadden said the ruling answered the legal question about presidential tariff power but left open “whether and how refunds will be available” for companies that had already paid. The firm said businesses were being pushed to review customs entries, preserve claims and assess litigation exposure. (tax.thomsonreuters.com) The Court of International Trade said on March 4 that the right to reclaim the duties rests with importers of record, not consumers, according to the Times of India report on the Amazon case. That distinction matters because many importers folded tariff costs into wholesale and retail prices long before the Supreme Court ruled. (skadden.com) ### Why is Amazon now in court? Two consumers, Lisa Markland of Maryland and Mari Cartagenova of Massachusetts, filed a proposed class action in federal court in Seattle accusing Amazon of collecting hundreds of millions of dollars in unlawful tariff costs by raising prices on imported goods sold through its online store. The suit covers purchases made between February 4, 2025 and February 20, 2026, and alleges violations of the Washington Consumer Protection Act and unjust enrichment. (timesofindia.indiatimes.com) The plaintiffs said Amazon acted as importer of record for some goods and embedded IEEPA tariff costs in consumer prices. They alleged Amazon chose not to pursue reimbursement from the government and instead retained a “windfall,” a claim attributed in the report to the complaint itself. Amazon’s position was described in the report as not having sought the refunds that the Supreme Court ruling made available to importers. (timesofindia.indiatimes.com) ### What happens next in the refund process? April 20 was the start date for claims through CBP’s CAPE platform, which requires shipment details, tariff classifications and proof of payment, according to the Times of India report. Approved refunds, with interest, were expected to be processed within 60 to 90 days. (timesofindia.indiatimes.com) May 22 brought a new front in Seattle federal court, where the Amazon suit seeks to test whether consumers can recover money indirectly through state-law claims even though customs refunds go to importers of record. The next milestones are likely to come from CBP’s claims processing and from court filings in the Amazon case. (timesofindia.indiatimes.com 1) (timesofindia.indiatimes.com 2)