Trump tariffs cancelled, but American importers may have to wait for years to get refunds

Despite the Supreme Court ruling President Donald Trump’s sweeping tariffs illegal, it could be years before importers receive refunds after complex litigation — if they receive refunds at all. Estimates say the administration has collected up to $175 billion in illegal tariffs.

As the Supreme Court did not address refunds in its judgment, the little-known US Court of International Trade (CIT) will decide on importers’ refund claims and rulings could take years.

As if complex litigation were not problematic enough, there are fears that the administration could pursue retribution against companies that seek refunds. In violation of longstanding norms, Trump has openly sought to undermine businesses he dislikes through lawsuits and public rhetoric.

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There are signs that Trump and his allies are counting on protracted litigation. If rulings come after the end of his term, hundreds of billions in refunds would become a problem for his successor to resolve — it would no longer be his headache. Trump has said “we’ll end up being in court for the next five years” regarding refunds.

How tariff refunds could take years

There are unlikely to be any automatic refunds. Any repayments will likely come only after litigation in the New York-based Court of International Trade (CIT).

More than 1,000 businesses had already filed for tariff refunds before the Supreme Court’s ruling, and that number is likely to grow, Alex Jacquez, Chief of Policy and Advocacy at Groundwork Collective, told CBS News.

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Under the law, importers usually have up to 314 days after customs clearance to seek tariff refunds. It is a complicated process.

Upon importing goods, companies pay an estimated tariff, and it takes up to 314 days for authorities to determine the final tariff amount. If there is a difference between the estimated tariff paid and the final amount assessed, it is either refunded or collected.

After the tariff is finalised, importers have up to 180 days to appeal the amount and request a refund.

“It will take at least several months, and in the longer case, possibly several years, for the tariff refund scheme to be made clear,” Yuji Takana, a specialist in US tariff systems at Hotta Liesenberg Saito, told Nikkei Asia.

Even though the litigation is complex and risky, the alternative of “doing nothing and waiting is very risky”, according to Takana.

For companies wanting refunds, filing an appeal is essential as even if constitutional arguments are likely to be dismissed, companies “need to at the very least make their positions clear”, Takana said.