Trump administration refunds roughly $100B in collected tariffs

The Trump administration has refunded $100 billion in tariff payments to U.S. businesses through the end of July, according to a court filing reported on August 5. The refunds cover more than half of the roughly $166 billion owed after the Supreme Court struck down a set of Trump-era tariffs that customs officials had continued collecting before the ruling. Several companies, from Amazon to smaller importers, have said the money has started arriving in their accounts. (abcnews.com) (theglobeandmail.com) The refunds are moving out at the same time the administration is pressing a new trade fight with Canada. Canadian Prime Minister Mark Carney said this week Ottawa was prepared to “get tougher” if the two sides failed to reach a deal before an August 19 deadline tied to threatened U.S. tariffs on about $20 billion of Canadian exports. Globe and Mail reporting also said negotiators had revived a proposal under which Canada could accept steel and aluminum export quotas in exchange for lower U.S. tariffs. ### How did the government end up refunding so much money? (abcnews.com) In February, the Supreme Court ruled that many of the tariffs were illegal, triggering one of the largest refund exercises U.S. Customs and Border Protection has had to manage. ABC News previously reported that the affected tariffs included the “Liberation Day” measures and a 10% tariff applied broadly to imports under the invalidated legal authority. CBP had said more than 53 million entries were tied to the refunds. (theglobeandmail.com) In May, CBP launched an online portal for businesses to seek repayment, and the first wave of refunds began reaching company bank accounts soon after. At least 75,000 companies had filed for refunds by mid-May, ABC News reported at the time. ### Who is getting the money back? Thousands of American importers are eligible, and ABC News said companies ranging from Amazon to small businesses have reported receiving payments. General Motors said in April that it expected about $500 million in tariff refunds after the Supreme Court decision, offering an early sign of how large some claims could be for major manufacturers. (abcnews.com) The total amount at issue has been described as roughly $166 billion, though some reports have cited about $165 billion. (abcnews.com) ABC’s latest report used the $166 billion figure from the court filing. ### Why does Canada matter to this story right now? August 19 is the immediate date businesses are watching. The Globe and Mail reported that Trump has threatened tariffs on about $20 billion of Canadian exports, including alcohol, dairy and electronics, unless negotiators reach an agreement. (abcnews.com) The same reporting said steel and aluminum quotas are back on the table as part of the talks. Mark Carney said Canada was ready to harden its stance if no agreement was reached by the deadline. Separate Globe coverage said Canada’s chief trade negotiator, Dominic LeBlanc, was back in Washington this week for talks. (abcnews.com) ### Why are builders and manufacturers paying attention? Steel, aluminum and imported equipment sit near the center of many industrial and construction supply chains. The refund wave removes one set of costs for importers that paid the invalidated tariffs, but the Canada talks leave open the prospect of new tariffs or quotas on some of the same categories of materials. (theglobeandmail.com) ABC News has reported that many other Trump tariffs remain in effect even after the Supreme Court ruling, and Yale Budget Lab estimated earlier this summer that the broader tariff regime still left the effective tariff rate at its highest level since the 1940s. (theglobeandmail.com) ### What happens next, and when? August 19 is the next milestone in the Canada-U.S. talks. The Globe and Mail said Ottawa is trying to get relief from Trump’s sectoral tariffs before that date, while the administration continues processing the remaining tens of billions of dollars in refunds still owed to businesses under the court order. (abcnews.com) (theglobeandmail.com) (abcnews.com)