US Court Orders Massive Tariff Refund

A major repayment exercise has begun in the United States after a court ordered customs authorities to refund more than $160bn (£121bn) collected under President Donald Trump’s “Liberation Day” tariffs, in what is being described as the largest tariff refund programme in history.

The ruling by the US Court of International Trade in March directed officials to return the funds collected under tariffs imposed through the International Emergency Economic Powers Act (IEEPA), affecting an estimated 330,000 importers.

The court held that affected businesses are entitled to recover their payments.

“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.

Under the new system, companies can now apply online for refunds, including interest, through a centralised portal launched on Monday.

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As of early April, more than 56,000 importers had already completed applications, with claims reportedly worth about $127bn (£94.3bn).

The refund system, known as the Consolidated Administration and Processing of Entries (Cape), was introduced by US Customs and Border Protection to streamline processing.

A Customs and Border Protection spokesperson said Cape had been designed to “efficiently process refunds”, adding that payments will be issued as a single lump sum rather than item-by-item claims.

Successful applicants are expected to receive refunds, including applicable interest, within 60 to 90 days.

However, reactions from the business community have been mixed, with some firms reporting smooth processing while others have experienced delays and technical errors.

A coalition of small businesses, We Pay the Tariffs, said the rollout has been uneven. Its executive director, Dan Anthony, said: “As expected, today’s refund portal launch is a mixed bag for small businesses.”

He also warned that uncertainty over potential new tariffs could offset any financial relief, adding that proposed future trade measures could erase gains from the refunds.

Among those affected is Aaron Powell, founder and CEO of Bunch Bikes, who said his company is preparing to claim about $120,000 in refunds.

He said he was able to access the portal shortly after it went live, but noted that others reported system errors later in the day.

Powell said his electric bike company was heavily exposed due to its global supply chain, and that any refunded funds would be used as a financial buffer.

“I am cautiously optimistic, but until the money is in my bank account, I am not counting on it or spending it,” he said.

He added: “At the moment, we are not hiring, not going out and spending or making big investments, it’s a buffer as we have more tariffs expected in July or August.”