US customs processes $35 billion in refunds for illegal Trump tariffs so far – Firstpost

The US customs agency has started processing more than $35.5 billion in tariff refunds to importers after the US Supreme Court ruled that the president had unlawfully imposed levies under emergency powers legislation, according to a new court filing.

The filing submitted on Tuesday before the United States Court of International Trade showed that the US Customs and Border Protection (CBP) had processed refunds including interest worth $35.46 billion as of May 11.

The refunds relate to tariffs imposed last year under the International Emergency Economic Powers Act (IEEPA), a 1977 sanctions law that Trump used to justify sweeping import duties. In February, the Supreme Court of the United States ruled 6-3 that the administration had overstepped its authority in using the law to impose tariffs.

According to the filing, CBP had received 126,237 refund applications by 7 am ET on May 11 through a newly created online portal known as the Consolidated Administration and Processing of Entries, or CAPE, which was launched on April 20.

Of those claims, 86,874 applications covering 15.1 million import entries were validated as eligible for refunds. So far, 8.3 million entries have been finalised for repayment, with the refund value including interest reaching $35.46 billion.

The court declaration was submitted by Brandon Lord, executive director of trade programmes at CBP’s Office of Trade. The filing also revealed that 1,880 consolidated refunds had not yet been sent to the US Treasury because importers had not provided bank account information.

The refund process is tied to nearly $166 billion in tariff collections that could ultimately be returned to importers following the Supreme Court ruling.

Major US importers, including carmakers and sportswear company Under Armour, have already indicated that tariff reimbursements are expected to provide a significant boost to profits and balance sheets.

The legal battle over Trump-era tariffs, however, remains ongoing.

After the Supreme Court ruling in February, Trump imposed a temporary global 10 per cent tariff using different legal justifications. Last week, the trade court ruled those levies illegal as well, although the decision was narrowly limited to two small businesses and the state of Washington, which had challenged the measures in court.

The Trump administration has appealed that ruling.

Judge Richard Eaton said during a closed hearing on Tuesday that CBP would need to provide another update on May 26 regarding the refund programme and the future functionality of the CAPE system.

The court was also informed that CBP is coordinating with surety companies over separate refund claims linked to the overturned duties.

Customs officials have previously acknowledged that the current phase of the refund portal does not yet cover all affected entries. More than one-third of disputed import entries involve more complex claims that will require additional processing phases, though no timeline has yet been announced.

Some importers reportedly began receiving initial refund payments last week, earlier than market participants had anticipated.

With inputs from agencies.