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Refunds on tariffs imposed during the presidency of Donald Trump are set to roll out to American businesses following a landmark ruling by the US Supreme Court. The court held that certain import taxes imposed under emergency powers were unconstitutional, paving the way for repayments.
A subsequent decision by the US Court of International Trade directed that affected companies should be compensated. The refund mechanism, managed by US Customs and Border Protection, is now going live, allowing importers and brokers to file claims through an online portal.
The refund process mandates that the importer provide a complete declaration about the goods that had been subject to a tariff charge. After this approval process is completed, payments are expected within 60 to 90 days. Officials reported that claims would be settled in batches, beginning with the most recent tariff charges.
It is estimated that over 330,000 importers paid a total of $166 billion based on over 53 million tariff charges. By mid-April, more than 56,000 importers had signed up for the e-payment system, which is estimated to have total claims of about $127 billion. Nevertheless, it was noted that the initial batch includes some specific categories of claims.
Legal experts have warned about potential pitfalls of the process that can result in claim rejection due to small mistakes. Thousands of transactions can be recorded on large forms, and even a single mistake can ruin everything. Technical problems during the first weeks of launching the new procedure were also warned about.
Small business owners also prepare to make claims, but there are concerns about the refund processing period, especially given possible cash flow issues.
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Consumers are not expected to receive any compensation, as the funds will be paid to businesses. Many businesses increased prices due to tariff costs and have no obligation to lower them or to refund the money. On the contrary, logistics companies that charge tariffs from their clients are expected to repay the money.
The rollout marks an early step in addressing the broader financial impact of the tariffs, with payments expected to be distributed gradually as claims are processed.
