Cargo containers are staged near cranes at the Port of Tacoma in Washington. Ted S. Warren/AP
U.S. Customs and Border Protection says it is building a system to deliver tariff refunds and expects it to be up and running within 45 days.
After the Supreme Court struck down many of former President Trump’s tariffs last month, importers have wondered when and how they would get refunds. Small businesses feared they might need to file individual lawsuits because lawyers and some officials warned the refund process could become mired in litigation.
On Friday, Customs told the U.S. Court of International Trade that its current computer system cannot immediately handle the large volume of refunds, but the agency is developing a streamlined process that would not require importers to sue. Officials said they plan to use the same electronic portal importers already use to track and correct customs filings.
The government estimates it collected about $166 billion from more than 330,000 businesses in tariffs the Supreme Court found unconstitutional. Judge Richard Eaton of the Court of International Trade said, “The law is clear. The duties were unlawful from the moment they were imposed. And that means that every single cent must be returned to the importer.”
Eaton ordered Customs to begin refunding tariffs immediately and with interest, and asked the agency for an update. An appeals court recently denied the Justice Department’s request to pause refunds for 90 days.
During the Supreme Court litigation, the Justice Department repeatedly assured courts that if the tariffs were struck down, the money would be returned — a point the government used to justify continuing to collect tariffs after a lower court had ruled them illegal last May. Sara Albrecht, head of the Liberty Justice Center that brought the case to the Supreme Court, said those assurances leave little room for refusing to pay refunds.
