U.S. Customs and Border Protection said it expects to begin sending out refunds next month from President Donald Trump’s tariffs that were struck down by the Supreme Court, a federal judge said in a court filing to the U.S. Court of International Trade.
What You Need To Know
U.S. Customs and Border Protection said it expects to begin sending out refunds on or around May 11 from President Donald Trump’s tariffs that were struck by the Supreme Court, a federal judge said in a court filing to the U.S. Court of International Trade
Last week, the Trump administration began accepting refund applications for some $166 billion in tariffs it had collected between last February and just over a year later – when the the nation’s highest court invalidated Trump’s use of the International Emergency Economic Powers Act to levy sweeping import duties on most goods coming into the U.S.
In an update to the court Tuesday, CBP official Brandon Lord wrote that as of Sunday evening, U.S. companies and importers had submitted more than 75,000 refund claims, and more than 47,000 – for 11.22 million entries – had been validated
Meanwhile, Trump said Thursday he would lift import duties and restrictions on whiskey following King Charles III and Queen Camilla’s visit to the United States this week
The agency said it plans to begin issuing return payments on or around May 11, Judge Richard Eaton wrote, following a closed conference Tuesday with U.S. trade officials and companies seeking their money back.
In the court filing, Eaton ordered CBP to provide an update by May 12 on the refund process, which officially launched last week.
On April, 20, the Trump administration began accepting refund applications for some $166 billion in tariffs it had collected between last February and just over a year later — when the the nation’s highest court invalidated Trump’s use of the International Emergency Economic Powers Act, or IEEPA, to levy sweeping import duties on most goods coming into the U.S.
In the 6-3 decision, the justices did not spell out a refund process for companies that had paid what Trump referred to as “Liberation Day” tariffs — as well as separate ones he imposed on items from Mexico and Canada, citing a national emergency over the flow of illicit drugs into the U.S.
Once the IEEPA tariffs were struck down, a number of American companies sued to claw back the import duties they had paid.
Last month, Eaton ruled that businesses were owed refunds for tariffs that had not gone through final computation and assessment — or liquidation. He also ordered CBP to implement a system for businesses to apply for refunds by last week.
In an update to the court Tuesday, CBP official Brandon Lord wrote that as of Sunday evening, U.S. companies and importers had submitted more than 75,000 refund claims, and more than 47,000 — for 11.22 million entries — had been validated.
He also said that refunds for more than 1.74 million entries were liquidated and being processed as of Sunday evening. About 16% of the entries — for about 2.124 million payments — have been rejected, Lord added in the filing.
Price Johnson, CEO of Cephalofair Games, said his company submitted its request for $140,809 via CBP’s online portal the day it opened, but their claim does not appear to be validated yet.
“We are watching it daily,” he said of the refund claim.
The California-based board game business uses manufacturing facilities in China.
Dan Anthony, executive director of WePayTheTariffs — a coalition that says it represents some 800 small businesses — called the rollout a “mixed bag” in an interview with CNN.
“We’ve had a number of companies that said, ‘We sailed right through, took a couple of minutes,’” he said. “We have others who have told us they are still just trying to access their accounts after first flagging this as an issue and reaching out to Customs six weeks ago.”
In his order, Eaton also noted that business had complained of “long wait-times to reset usernames and passwords, over-registration of training events, and confusion with respect to identifying the correct importer” in their claims.
In a presentation it posted for importers, CBP said that companies could generally expect to receive refunds 60-90 days after their entries were marked as accepted on the online portal.
Some businesses that paid IEEPA tariffs to shipping companies like FedEx and UPS, which acted as intermediaries, have also received more clarity on receiving their money. Both global courier businesses have said they would pass along refunds to customers.
“UPS is processing refunds for eligible shipments where we served as the importer,” UPS spokesperson Natasha Amadi said in a statement. “We will expand our efforts as CBP launches future phases. We are committed to supporting our customers during the refund process.”
FedEx said it would refund importers if the federal government returned the money the shipping company had collected on behalf of businesses.
Meanwhile, Trump last week praised companies that were opting not to apply for refunds as “brilliant” and said he would “remember” them.
Section 301 investigations
The Office of the U.S. Trade Representative held two days of hearings this week as part of investigations under Section 301 of the Trade Act, which allows the U.S. to impose tariffs in response to unfair foreign trade actions.
Last month, Ambassador Jamieson Greer announced the investigations. The hearings were scheduled to discuss “the failure to impose and effectively enforce a ban on the importation of goods produced with forced labor” by dozens of countries, including Brazil, Japan, India, Canada, Mexico and China, as well as the European Union.
The announcement came after Trump said the U.S. would use Section 301, as well as several other statutes, to recoup tariff revenue lost when the IEEPA import duties were invalidated.
The U.S. has levied a number of industry-specific duties under Section 232 on goods such as copper, steel, aluminum and lumber. He also created tariff carve-outs on products that include coffee, beef and tropical fruit.
Following King Charles III and Queen Camilla’s visit to the United States this week, the president said Thursday he would lift import duties and restrictions on whiskey, explaining his decision as “having to do with Scotland’s ability to work with the Commonwealth of Kentucky on Whiskey and Bourbon.”
“The King and Queen got me to do something that nobody else was able to do, without hardly even asking!” Trump wrote in a Truth social post. “A wonderful Honor to have them both in the U.S.A.”
A request made to the Commerce Department for additional details about the removal of whiskey tariffs — and a timeline for when that would take effect — was not immediately available.
There is also currently a global 10% tariff on imported items that the president imposed under Section 122. The latter expires by law after 150 days — in July — without congressional approval.