The Trump administration will begin processing refunds for US$160 billion (A$223.6 billion) worth of refunds in tariffs that the United States Supreme Court struck down in February.
It is set to be the biggest repayment programme in history. Companies can now apply online for the money they were charged under the ‘Liberation Day’ tariffs, plus interest, to be returned.
Trade lawyers are warning of bureaucratic hurdles, legal vulnerabilities, and the possibility of a last-minute appeal by the Trump administration.
Grayhawk Law principal and trade attorney, Matthew Seligman, said importers are pessimistic that the government is going to make it easy.
“They’re anticipating that the government is going to make it as difficult as possible to get their money back,” he said.
In March, the U.S. Court of International Trade ordered customs officials to refund the more than $160 billion the government collected. This would put roughly 330,000 importers in a position to potentially win back some money.
However, some individual consumers who were hit with the tariffs indirectly through higher prices are not expected to be compensated.
The refunds relate to levies charged by U.S. 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.
More than 56,000 importers had completed the necessary steps to apply for refunds worth around $127 billion as of early April.
Customs and Border Protection said successful applicants can expect refunds, with interest, to be paid in 60 to 90 days.
The system will process refunds for importers as one lump sum, as opposed to making businesses apply for them item by item.
A coalition of small businesses has had mixed experiences with the portal, with some saying it was a seamless process while others reported delays and errors.
Another major issue that has arisen is the impact on the individual shopper, who faced higher prices as a result of Trump’s tariffs but has no means of compensation.
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.
FedEx has said it would pass refunds back to consumers it shipped goods to, since those customers footed the bill for the tariffs in the first place.
While Costco suggested it could lower prices if it gets its money back, consumers have already begun suing the retailer, unconvinced that a vague promise of cheaper goods is good enough.
