U.S. repays $149 billion in tariffs

U.S. Customs and Border Protection has begun returning billions of dollars in tariffs collected under President Donald Trump’s emergency-powers trade actions after the Supreme Court ruled on February 20 that the International Emergency Economic Powers Act did not authorize those duties. The refunds are going to the importers of record that paid the duties, not directly to households that absorbed higher prices. As of May 11, CBP said it had processed $35.46 billion in refunds, including interest, covering 8.3 million shipments. The broader pool is much larger: court filings cited by CNBC said more than 330,000 importers paid about $166 billion on more than 53 million shipments. ### Which tariffs were struck down? The Supreme Court said on February 20 that the 1977 emergency-powers law, IEEPA, did not give Trump authority to impose the tariffs challenged in Learning Resources v. Trump and the related V.O.S. Selections case. The opinion described duties tied to drug-trafficking emergencies and a separate set of “reciprocal” tariffs tied to trade deficits, including a 25% duty on most Canadian and Mexican imports, a 10% duty on most Chinese imports, and a baseline tariff of at least 10% on imports from all trading partners. (supremecourt.gov) The Federal Circuit on March 2 ordered the mandates to issue immediately in the V.O.S. Selections appeals, dissolving an earlier stay. That cleared the way for lower-court refund orders to take effect. ### Why are companies getting the money back first? CBP’s refund system is built around the importer of record because that is the party that paid the duty at the border. (supremecourt.gov) The agency says it is developing CAPE functionality within its Automated Commercial Environment to process valid refund requests for IEEPA duties “as authorized by court order or applicable law.” (cafc.uscourts.gov) The Court of International Trade said on March 4 that “all importers of record” who paid IEEPA-based duties were entitled to the benefit of the Supreme Court’s decision, according to summaries of the order by Sullivan & Cromwell and Holland & Knight. Those court orders addressed customs payments, not retail pass-through to end buyers. (cbp.gov) ### So why haven’t consumers seen much benefit? The New Yorker reported on May 18 that the administration had started repaying more than $150 billion to companies that paid the duties, while most customers were still waiting to see much benefit. That reflects how tariffs are collected and refunded: the government charges importers, and any consumer effect depends on whether a company had passed the tariff through into prices and then chooses or is able to reverse that later. (sullcrom.com) CNBC reported that some companies are using the money to stabilize operations rather than cut prices. Basic Fun Chief Executive Jay Foreman said the toy company would use refund dollars to support 2026 cash flow, raise salaries and invest in staff. Oshkosh Chief Financial Officer Matt Field said the manufacturer had begun receiving payments representing an initial portion of its claims. (newyorker.com) ### How far along is the refund process? CBP said importers and brokers could begin filing through the online portal on April 20, with approved claims expected to take 60 to 90 days for payment. The first phase covers more recent entries, including some not yet finally liquidated or within 80 days of final accounting, meaning many claims will move later. (cnbc.com) As of May 11, the agency had received 126,237 applications and anticipated paying $35.46 billion, according to a court filing reported by Reuters and CNBC. That is well below the roughly $166 billion in duties that court filings said had been paid overall, which indicates the refund process is still in an early stage. (cnbc.com) ### What has Trump said about the repayments? Trump said on May 12 that he would “fight” having to pay the tariffs back, CNBC reported. The Independent reported on May 18 that Trump complained publicly about having to return “$149 billion,” describing the repayments as money going back to countries and companies he dislikes. Brookings wrote on May 18 that the Trump administration has challenged a trade system based on reciprocity and negotiated rules, placing U.S. policy at odds with institutions that helped shape the postwar order. (usnews.com) In this case, the legal constraint came from U.S. courts and customs procedures rather than a new trade negotiation. (cnbc.com) ### What happens next? CBP says additional refund claims will continue to move through CAPE as importers and brokers submit documentation and the agency validates entries. The agency has warned users to watch for scams tied to the refund process and says payments will continue in phases as court-authorized claims are processed. (cbp.gov) (brookings.edu)