Trump administration refunds $100bn in tariff repayments after court setback

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Trump administration tariff refund

Highlights

U.S. Customs and Border Protection has refunded about $100bn in tariffs since the Supreme Court struck down the regime in February, with over $128bn accepted for processing.
Refunds mainly benefit large companies, as only the importer of record can claim through the CBP system, leaving many small businesses unable to recoup tariff costs.
Despite returning billions, the Trump administration has begun imposing new tariffs of 10% to 12.5% on over 60 economies, now facing at least three legal challenges.

Refund process accelerates after Supreme Court ruling

As reported by Financial Times, U.S. customs officials told judges at the U.S. Court of International Trade on Tuesday that the administration has paid out about $100bn in refunds since the Supreme Court in February struck down the tariff regime.

The lower court ordered U.S. Customs and Border Protection to process the repayments after the Supreme Court barred the use of emergency economic powers to impose the levies. CBP says in a court filing that more than $128bn has been accepted for processing, indicating that further refunds are likely.

The speed of the repayments surprises trade lawyers and analysts because administration officials previously warn that the process could take years. Treasury secretary Scott Bessent says in February that any eventual payout would amount to corporate welfare, while trade lawyer Ted Murphy says the administration is moving quickly through the refunds.

Business impact and new tariff risks

Lawmakers and small business groups argue that the current process mainly benefits large companies because only the importer of record can file a claim through the CBP system. That leaves many smaller businesses unable to recover costs they absorbed indirectly through higher prices or itemised surcharges.

Representative Greg Casar says the refunds are going to companies rather than working people and argues the money should flow back to U.S. consumers. Some small businesses also say they do not know how to reclaim the duties or lack the capacity to do so.

Even as it returns billions of dollars, the administration is trying to rebuild Trump’s tariff programme through separate legal authority. Last week it started imposing new duties of between 10% and 12.5% on more than 60 economies, although at least three legal challenges are already targeting that latest round of measures.

In our earlier article on the post–Supreme Court tariff refunds, we reported that U.S. Customs and Border Protection had already returned about $100bn to importers after the February ruling that blocked using emergency economic powers for the duties. We also noted that more than $128bn in claims had been accepted for processing, pointing to additional repayments, even as the administration moved to roll out new 10% to 12.5% tariffs under separate legal authority that is already facing legal challenges.

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