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The Guardian World1 min read
Trump tariff refunds begin but consumers likely to miss out
TL;DR
The Trump administration is processing refunds for over $160 billion in tariffs following a Supreme Court ruling. While companies can apply for refunds, individual consumers are unlikely to receive compensation for higher prices caused by these tariffs.
Key points
- Trump administration processing tariff refunds
- Over $160 billion in refunds due to Supreme Court ruling
- 330,000 importers eligible for refunds
- Consumers unlikely to receive compensation
- Refunds relate to tariffs under the IEEPA
The Trump administration has begun processing refunds for billions of dollars in tariffs that the US Supreme Court struck down in February.
In what is to be the biggest repayment programme in history, companies can apply online for money they were charged under the so-called "Liberation Day" tariffs - plus interest - to be returned.
The US Court of International Trade in March ordered customs officials to refund the more than $160bn (£121bn) the government had collected, putting roughly 330,000 importers in a position to potentially win back some money.
But some individual consumers, who were hit by the tariffs indirectly through higher prices, are not expected to be compensated.
The refunds relate to levies charged by US President Donald Trump under the International Emergency Economic Powers Act (IEEPA).
"All importers of record whose entries were subject to IEEPA duties are entitled to the benefit" from the high court's ruling, Judge Richard Eaton wrote in March.
As of early April, more than 56,000 importers had completed the necessary steps to apply for refunds online when the portal opened, with their claims worth $127bn (£943m).
The portal, known as the Consolidated Administration and Processing of Entries (Cape), went live on Monday.
A Customs and Border Protection spokesperson said Cape had been built to "efficiently process refunds".
The system will process refunds for importers as one lump sum, rather than making businesses apply item by item.
Customs and Border Protection said successful applicants can expect refunds, as well as any applicable interest, to be paid in 60 to 90 days.
A major issue with the process has been concerns raised by individual shoppers who faced higher prices as a result of Trump's tariffs yet have no means to claim compensation themselves.
One way in which consumers could be compensated is by businesses disbursing any funds recouped from Customs and Border Protection to those affected, though few have announced plans to do so.
Individuals have begun filing class action lawsuits against companies they claim passed on the cost of Trump's tariffs, arguing that any refunds businesses are paid should be passed on to consumers.
Federal cases have been filed against Ray-Ban maker EssilorLuxottica and FedEx, while a class-action lawsuit has been filed against Costco in the US District Court for the Western District of Washington.
Costco chief executive Ron Vachris has said the retailer plans to pass on any tariff refunds to customers "through lower prices and better values".
Q&A
How much money is being refunded from the Trump tariffs?
The refunds amount to over $160 billion that was collected from tariffs imposed by the Trump administration.
Who is eligible for the tariff refunds initiated by the Trump administration?
Approximately 330,000 importers can apply for refunds under the program, but individual consumers are not expected to be compensated.
What are the 'Liberation Day' tariffs related to?
The 'Liberation Day' tariffs refer to levies charged under the International Emergency Economic Powers Act (IEEPA) by former President Donald Trump.
When did the US Supreme Court rule on the tariffs that led to these refunds?
The US Supreme Court struck down the tariffs in February, prompting the refund process to begin.
