Trump tariff refunds back on the table as US launches 45-day planning window
The U.S. customs agency said it is preparing a new system within 45 days to start refunding tariffs that were collected during the presidency of Donald Trump. These tariffs were earlier struck down as illegal by the U.S. Supreme Court, which said they were unconstitutional. However, the Supreme Court did not explain how the government should return the money, which created confusion for many importers. Because of this, small importers worried the refund process might become costly and slow if they had to file legal claims individually.
Trump Tariff refund plan
A customs official named Brandon Lord from U.S. Customs and Border Protection explained the new plan in a court declaration on Friday. Lord said the new refund process will require very little paperwork from importers, making it easier for them to claim their money. The statement came just before government lawyers met with a federal trade judge to discuss how the refunds will actually happen.
The meeting was held with Judge Richard Eaton from the United States Court of International Trade. The goal of the meeting was to create a large settlement process to return about $166 billion in tariff payments, as reported by Reuters. Around 330,000 importers across the United States could be eligible for these refunds. Judge Eaton had earlier issued an order on Wednesday telling U.S. Customs and Border Protection (CBP) to begin refunding tariffs. His order suggested the refunds could be given to hundreds of thousands of importers using the agency’s existing internal system.
Importers lawsuits growing
But after meeting government lawyers on Friday, Eaton changed his order and removed the requirement for “immediate compliance.” This change likely gives CBP more time to build the new refund system mentioned in Brandon Lord’s declaration. Eaton said he updated his order after reviewing Lord’s declaration explaining the technical challenges, as stated by USA Today. The judge is currently overseeing about 2,000 lawsuits filed by importers asking for tariff refunds. Some of the companies involved in the lawsuits include FedEx and L'Oréal.
Trade lawyers say these lawsuits are just the beginning, and thousands more companies were ready to sue if refunds were not arranged. On Friday, affiliates of Nintendo and CVS Health also filed new lawsuits asking for refunds. Under the proposed system, importers will submit a declaration in CBP’s electronic platform called ACE listing the tariff payments they made. After the information is checked and confirmed, the government will send refunds with interest.
