Will U.S. Consumers See Refunds From Trump’s Tariffs? | National News

The federal government on Monday initiated a claim system for billions of dollars in refunds on President Donald Trump’s sweeping tariffs, which were deemed unconstitutional earlier this year.

Here’s what businesses – and consumers – should understand about the process:

The president just over a year ago enacted sweeping import taxes on goods from nearly every country in the world, invoking the International Emergency Economic Powers Act (IEEPA) of 1977 to justify the move. While the administration has long suggested that tariffs are paid by foreign interests, the fees are paid by the party that imports goods into the country – and frequently passed on to the consumer who buys them. Following this economic “Liberation Day,” as the administration dubbed it, inflation rose, consumer prices climbedand companies were forced to diversify their supply chains.

However, in late February, the Supreme Court issued a 6-3 ruling striking down the tariff scheme on the basis that it undermined Congress’ tax-setting powers. The result? The federal government must pay up and pay back those businesses affected.

Under the now defunct tariff scheme, the government collected some $166 billion in revenue. All of that – in addition to interest – will now have to be returned. U.S. Customs and Border Protection will be responsible for distributing refunds.

U.S. importers and customs brokers who paid on an importer’s behalf can apply for refunds through CBP’s Consolidated Administration and Processing of Entries tool beginning on Monday at 8 a.m. ET.

The refund process will occur in phases, though the precise number has yet to be determined. Phase 1 encompasses importers with what are known as “unliquidated” tariffs, plus tariffs that were finalized in the last 80 days. Those transactions, similar to a bank payment that is still pending, have not officially closed and are easier to reverse or modify. These recipients account for roughly 63% of entries for which IEEPA duties were paid, according to a March court order from the United States Court of International Trade.

Once a claim has been accepted, businesses should receive their funds electronically in anywhere from 60 to 90 days, according to CBP.

Short answer: It’s not likely.

In many cases, the cost of tariffs were passed onto consumers in the form of higher prices for goods. While there are consumer lawsuits aimed at specific companies – such as the grocery giant Costco and the cosmetic brand Revlon – making their way through the legal systemthey’ve yet to yield any rulings – and experts say the road to refunds will likely be winding.

As it stands, consumer refunds are at the whim of businesses.