A refund system is being implemented for companies that paid Trump tariffs



Donald Trump (i) and one hundred dollar bill (d)Photo © Flickr/Gage Skidmore - One hundred dollar bill (Wikipedia)

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The United States government began the process on Monday to return approximately $166 billion that was illegally collected through tariffs that the Supreme Court overturned in February.

This judicial decision invalidated a key component of President Donald Trump's tax scheme.

Details of the first phase

The U.S. Customs Service will activate the initial payment phase aimed at a large number of affected companies, with a planned disbursement of $127 billion.

The key points of the process are:

Management Portal: The platform launched today will serve 63% of eligible companies, which will be able to process documentation to recover payments made under the International Emergency Economic Powers Act (IEEPA) of 1977.

Initial scope: This phase focuses on payments that are still under federal review and that, technically, have not yet been definitively settled.

Deadlines: Once the applications from importers are accepted, the Customs Service estimates that refunds will be issued within a period of 60 to 90 days.

Total amount at stake: Approximately 166 billion dollars.

Scope: More than 330,000 affected importers and 53 million shipments recorded under now-canceled tariffs.

Phase 1: Currently, 56,497 importers are already registered and are eligible to receive an initial amount of 127 billion dollars, a figure that already includes accrued interest.

“It’s about having a clear process and keeping track of what has been submitted and what has been paid, so that nothing gets lost,” stated Nghi Huynh, a partner at the firm Armanino, in remarks reported by the agency AP.

"Each file can include thousands of entries, but accuracy is essential, as submissions can be rejected if the format or data is incorrect," he added.

The Precedent: The ruling that nullified Trump's policy

This return process is the direct consequence of a legal battle that reached the highest judicial instance.

On February 20th, in a 6-3 ruling, the Supreme Court determined that President Donald Trump exceeded his constitutional authority by imposing tariffs unilaterally on nearly all trade partners.

The administration had invoked the International Emergency Economic Powers Act (IEEPA) of 1977, arguing that the trade deficit constituted a "national emergency" that justified bypassing the legislative process.

However, the Court ruled that the Executive does not have the authority in times of peace to invoke this law for tariff purposes, returning that power exclusively to Congress.

After this ruling, the International Trade Tribunal confirmed last month that companies had a legitimate right to full restitution of their payments.

A high-precision technical process

Despite the opening of the portal, the refund will not be automatic or immediate.

CBP has warned that the system will process applications in phases, prioritizing the most recent payments and those that have not yet been definitively settled.

Meghann Supino, a partner at Ice Miller, has warned her clients about the technical rigor required

"If there is an entry in that file that does not qualify, it may cause the entire entry to be rejected or that specific item to be rejected by Customs."

Supino also urged calm regarding the start of the digital program: “Like any online electronic program that launches with great interest, I suppose there will be some setbacks with the program on Monday... we believe that patience will pay off.”

Relief (and anticipation) for small businesses

For small business owners, the collection of these tariffs was a critical blow to their cash flow.

Brad Jackson, co-founder of After Action Cigars, recounted how his company had to absorb $34,000 in import taxes on cigars in order to avoid raising prices for their consumers.

Although Jackson welcomes the measure, he criticizes the estimated response times of 60 to 90 days

"My main concern is the response time. A refund process that takes several months to complete does not address the cash flow problem it is supposed to fix."

The consumer's dilemma: Who will receive the money?

Legally, the system will reimburse importers directly, who are not required to share those funds with their customers. However, the legal front for consumers remains open:

Class actions: There are legal proceedings against giants like Costco and Essilor Luxottica to compel them to refund overcharged amounts to consumers.

Messaging companies: FedEx and UPS, which charged fees directly to the recipients, have promised to handle the returns.

"We are working with our customers as CBP begins processing refunds, and we plan to start filing claims on April 20," stated FedEx in an official statement.

While past charges are being corrected, foreign trade faces a new scenario: Trump has implemented a temporary 10% tariff under a different legal framework (Section 122), which will remain in effect until July 23, 2026.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.