After the Supreme Court struck down Donald Trump's massive International Emergency Economic Powers Act (IEEPA) tariffs in a case I helped litigate along with the Liberty Justice Center and others, litigation continued over tariff refunds owed to the many businesses that paid illegally collected tariffs under IEEPA - a total of some $166 billion. In March, Judge Richard K. Eaton of the US Court of International Trade - the judge assigned to oversee the refund process - ordered the administration to grant refunds to to all those businesses that were forced to pay the tariffs - including those that had not filed lawsuits seeking refunds. This week, on April 14, in response to Judge Eaton's court order, the US Customs and Border Protection agency (CBP) submitted a required update on the status of their refund plan. The Hill has a helpful summary:
Roughly 330,000 importers who paid a combined $166 billion as part of President Trump's emergency tariffs are waiting on refunds after the Supreme Court in February struck down the levies in a blockbuster 6-3 decision.
CBP, the federal agency in charge of collecting tariffs, has warned the immense scale of the refund effort requires time. Officials have been working to launch the first phase of the new system on April 20, though the agency previously suggested importers may need to wait an additional 45 days afterwards to actually receive their funds.
Lord said the system will be able to process electronic refunds for about 82 percent of the affected tariff entries. That accounts for about $127 billion in deposits. More than 56,000 importers have already signed up, and the number continues to grow as the system nears its launch.
Others won't be able to use that automated process. Some entries that haven't gone through a formal close-out step called "liquidation" and are subject to antidumping orders must instead go through a manual, administrative process that requires additional steps, Lord noted.
CBP says that applies to about $2.9 billion worth of tariff deposits that need refunding.
