Customs Agency Pledges to Return $130 Billion in Overturned Tariffs

U.S. Customs and Border Protection (CBP) is developing a way to refund to importers the money they paid under tariffs that were later struck down by the Supreme Court, Reuters reported Friday (March 6).

A CBP official said Friday in a court filing that CBP cannot immediately comply with a judge’s order that it process the refunds but added that the agency is developing a way to do so, according to the report.

A system will be ready within 45 days, but the official did not estimate how long it would take to process the refunds, the report said.

It was reported Wednesday (March 4) that the U.S. government collected $130 billion in the now-illegal tariffs.

When the Supreme Court ruled that these tariffs were illegal, it did not address whether the money already collected should be repaid. That left the decision to a federal trade court.

On Wednesday, a federal trade court judge ordered the CBP to begin the process of refunding importers and to provide an update at a Friday hearing.

During the Wednesday hearing, Judge Richard Eaton at the Court of International Trade said that “every single cent of IEEPA duties that was imposed must be refunded.” IEEPA, or International Emergency Economic Powers Act, is the law that President Donald Trump cited when imposing the tariffs.

The Financial Times reported earlier Friday, citing unnamed sources that the CBP is rejecting companies’ applications for refunds of tariffs they paid.

The agency is rejecting requests for refunds both on shipment entries that have not been officially closed and those that have already been closed, according to the report.

Some lawyers have advised their clients to file not only paperwork with the CBP but also lawsuits, per the report.

CBP did not immediately reply to PYMNTS’ request for comment on the FT report.

National Economic Council Director Kevin Hassett was asked about the FT report Friday by CNBC, and responded that “private actors are going to work out the way refunds should happen” and that small businesses owners should “watch the big players litigate over this,” according to the FT.