The United States government has begun rolling out a system to process refunds worth more than $166 billion in tariff revenues collected under former President Donald Trump, following a Supreme Court ruling that invalidated a significant portion of the trade duties.
The conservative-led Supreme Court, in a February decision, struck down several of Trump’s tariffs, describing it as a major setback for one of his central economic policies. The ruling effectively opened the door for affected businesses to seek reimbursement.
On Monday, US Customs and Border Protection (CBP) announced that it has activated the first phase of its refund processing system.
This allows importers and customs brokers to begin submitting claims for recovery of tariff payments.
The agency noted in March that over 330,000 importers may qualify for refunds linked to duties or deposits paid on more than 53 million shipments.
According to CBP, about $127 billion in duty payments are currently eligible for electronic reimbursement under the initial rollout of the system.
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The Supreme Court ruling specifically concerns tariffs imposed under the International Emergency Economic Powers Act, a mechanism Trump used to levy broad duties on trading partners after returning to office in January last year.
However, tariffs imposed on specific sectors—such as steel, aluminium, and automobiles—remain unaffected by the ruling.
In the wake of the judgment, thousands of companies have taken legal action at the Court of International Trade, seeking to reclaim payments made under the invalidated tariff regime.
The eventual impact on consumers will depend on whether companies pass refunded amounts down the supply chain, as many of the costs were initially absorbed by buyers.
Some firms have already indicated plans to do so. For instance, FedEx said it intends to return tariff-related charges to “shippers and consumers who originally bore those charges.”
CBP further stated that approved refund requests will typically be processed within 60 to 90 days once validated applications are submitted.