Trump tariff refunds damaged US importers’ bank accounts
The Trump administration has initiated the process of issuing refunds for the $166 billion in global tariffs that were deemed unlawful by the US Supreme Court earlier this year. According to trade lawyers, several of their clients have reported receiving funds in their bank accounts as of Wednesday. One attorney, Daniel Cannistra, refrained from disclosing his client’s identity or the sum they had received, but noted that the payment from the company included interest. He stated that additional companies had been informed they are set to receive refund payments beginning Thursday. Chicago-based trade lawyer Mollie Sitkowski, at Faegre Drinker Biddle & Reath, stated that one of her importer clients received $5,700 on Tuesday for claims filed on April 25. The refund payments signify a significant development in the intense legal battle surrounding one of the president’s hallmark economic policies.
During the course of the litigation, hundreds of thousands of importers paid the contested tariffs. The Supreme Court did not settle the refund issue when it ruled against the government in February, leading to further disputes in the US trade court in New York. On April 20, US Customs and Border Protection introduced a new online refund portal. The agency stated in court filings that the initial phase of the refund program would not be able to accommodate claims for over a third of the 53 million import entries in question, however. By the end of April, claims encompassing approximately 1.74 million entries had successfully passed the initial validation stages and were progressing through the refund process, as stated in a prior court filing by a Customs official. Several million entries were rejected. The government is scheduled to provide its next update in court on May 12.
Representatives from Customs and Treasury have yet to provide a response to inquiries for comment. Customs officials have not provided a timeline for the implementation of subsequent phases of the refund program for imports that involve more complex situations. The Trump administration has not pledged to refund all tariffs collected under the president’s invocation of the International Emergency Economic Powers Act, or IEEPA. However, the government has confirmed that it will pay interest on the refunds that have been processed.
Only importers who have paid tariffs on goods entering the country are eligible to apply for refunds from the US government. A handful of companies have made public commitments to distribute funds they receive to their customers, including FedEx Corp. and a game developer known for the widely enjoyed party game Cards Against Humanity. In the months following the Supreme Court’s decision, consumers have initiated class action lawsuits nationwide against businesses they allege increased prices to offset tariff costs, aiming to recover those funds once refunds are issued. No court has issued a ruling in these cases as of now.
