U.S. repays $150bn in tariffs

The Trump administration has begun sending back tariff money that importers paid under duties later struck down by the courts. The refunds follow a February Supreme Court ruling against tariffs imposed under the International Emergency Economic Powers Act, or IEEPA, and a subsequent Court of International Trade process directing repayments. President Donald Trump has publicly complained about the repayments, saying the government is being forced to return money it had collected from foreign countries and companies. Companies, not households, are the first in line to get the money back. ### Why is the government repaying tariff money at all? The Supreme Court in February ruled 6-3 that tariffs Trump imposed under IEEPA were unlawful, according to Stateline and legal analyses published after the decision. That opened the way for importers to seek refunds on duties already paid, with the total exposure estimated at roughly $166 billion. The U.S. Court of International Trade then oversaw the mechanics of repayment. Court filings cited by CBS News said the administration expected the first refunds to go out as early as May 11, after U.S. Customs and Border Protection launched a claims portal in April called CAPE, short for Consolidated Administration and Processing of Entries. (stateline.org) ### Who is actually receiving the refunds? Oshkosh Corporation said on May 12 that it had started receiving tariff refund payments, though it had not yet verified the full amount of its claims. Basic Fun, the toy company behind Care Bears and Tonka trucks, also said it had begun receiving payments that day. U.S. Customs and Border Protection told the court it expected to pay $35.46 billion on 8.3 million shipments in an initial phase, CNBC reported. (cbsnews.com) That first phase covers entries finalized within the prior 80 days, meaning the process will extend beyond the first wave of payments. ### Why are consumers not getting checks? The New Yorker reported that the administration has started repaying more than $150 billion to companies that paid the duties, while most customers have yet to see much benefit. (cnbc.com) That reflects how the tariff system worked: importers paid the duties at the border, then often passed the cost through supply chains into retail prices. Stateline reported that several state fiscal officials have demanded more disclosure and consumer protections as refunds begin flowing to businesses. Minnesota State Auditor Julie Blaha said consumers bore much of the tariff cost through higher prices and should not be excluded from the benefits. (newyorker.com) Some logistics companies have said they will seek refunds on behalf of customers. CNBC reported that UPS, FedEx and DHL had previously said they would file claims for customers without requiring further action from them, though that does not amount to a broad consumer refund program. ### What exactly did Trump say about the repayments? (stateline.org) Trump said in a Fortune interview published May 18 that the refund process was angering him months after the court defeat. The Independent quoted him as saying, "Can you imagine…to people who hate us, to countries that ripped us off for years, I've got to give them back $149 billion." (cnbc.com) Trump also told WABC radio on May 12 that the situation was "crazy" and said, "In theory, you have to pay the tariffs back. We'll fight that," according to CNBC. In the same interview, he said the government had been taking in "fortunes" from "countries and companies that hate us." ### What happens next in the refund process? U.S. Customs and Border Protection is continuing to process claims through the CAPE portal, which CBS News reported opened on April 20 and initially faced technical problems. (independent.co.uk) Judge Richard Eaton said accepted claims were already moving into the refund stage, with additional payments to come from the Treasury Department. (cnbc.com) The next phase will depend on how quickly Customs clears pending claims and whether more litigation changes the scope of relief. For now, the concrete milestone is administrative: importers and brokers continue filing through CAPE, and further repayments are expected over the coming months. (cbsnews.com)