Trump Administration Returns $100bn in Duties to Importers Following Court Decision

The administration of US President Donald Trump has returned around $100bn in duties collected as part of the "Liberation Day" tariff campaign to importers. This represents roughly 60% of the $165bn total received by US Customs prior to the court-ordered cancellation of tariffs.

In February, the US Supreme Court ruled that the International Emergency Economic Powers Act does not permit the president to independently impose import duties. The court upheld the judgment in the V.O.S. Selections case, which declared both the general "reciprocal" tariffs and duties imposed under the guise of combating drug trafficking unlawful.

Subsequently, the Court of International Trade ordered US Customs and Border Protection to process refunds. According to the agency, applications for over $128bn have already been accepted for processing, meaning the actual payout amount may rise significantly soon.

To expedite the procedure, Customs launched the CAPE electronic system in April. Through it, importers submit lists of goods shipments on which unlawful duties were paid, after which the service recalculates the payments and transfers the funds to bank accounts.

However, only the official importer of the goods or the customs broker who filed the initial documents can submit a claim. Companies that purchased imported goods through intermediaries, and effectively paid the tariff in the form of a higher price or a separate surcharge, have no direct access to compensation. Buyers are also not entitled to an automatic refund of the overpayment. 

Consequently, large importers and retail chains become the main recipients of the disbursements. American lawmakers demand that companies pass on at least part of the refunded funds to consumers and small businesses, but there is no mandatory mechanism in place for this.

Despite returning tens of billions of dollars, the White House is attempting to restore the tariff system on a different legal foundation. At the end of July, the US imposed tariffs ranging from 10% to 12.5% on goods from over 60 countries and the European Union, citing Section 301 of the Trade Act. The new framework is already being challenged by US states and small businesses. 

Based on materials from: Financial Times, US Supreme Court, US Customs and Border Protection