The United States government has started refunding more than $166 billion in tariffs after the United States Supreme Court ruling on Trump tariffs struck down a key part of President Donald Trump’s trade policy.
According to The New York Times, US Customs and Border Protection launched the refund system this week. It allows importers to reclaim tariffs collected under emergency powers that the court ruled were misused.
The decision triggered one of the largest refund operations in US history. Officials estimate that more than 330,000 importers paid duties on millions of shipments.
Demand surged immediately after the system went live, according to The Hill. More than 3,000 companies, including FedEx and Costco, had already filed lawsuits to secure refunds before the rollout.
At the centre of the case is Trump’s use of the International Emergency Economic Powers Act (IEEPA). He used the 1977 law to impose broad tariffs, but the Supreme Court ruled in February that the administration exceeded its authority.
As a result, the ruling dismantled a major part of Trump’s trade strategy, which had targeted multiple imports and trading partners.
Who benefits from refunds
Importers who directly paid the tariffs will receive refunds. However, consumers will not get direct payments, even though they bore higher prices.
Some companies may pass on the refunds. FedEx said it will return funds where applicable. Costco also signalled possible price reductions, although it faces pressure from consumers seeking direct compensation.
Read more:Trump vows tariffs on eight European nations over Greenland
Small businesses face challenges
However, smaller companies face delays. Many lack legal and administrative support to file claims quickly.
Trade analysts warn that larger firms benefit most because they have already prepared legal teams and filed early claims.
One analyst told Fortune that the process risks excluding smaller importers who are still trying to understand the system.
System challenges and delays
US authorities built a new digital platform to handle refund claims. The system must separate legal from illegal tariff collections, sometimes on the same shipments.
Officials say the platform currently covers about two-thirds of affected entries and will expand in phases.
Processing may take 60 to 90 days after approval. Experts also expect delays and technical issues due to the scale of the operation.
The government will also pay interest, which adds about $650 million per month to the total cost.
Broader economic impact
Businesses say uncertainty remains high. Many firms plan to save the refunds instead of investing, due to fears of new tariffs under ongoing trade investigations.
A small-business group said many companies feel the damage has already been done through layoffs and rising costs.
Meanwhile, legal disputes may continue as the administration considers further court challenges, even as lower courts order repayments.
Conclusion
The ruling has created the largest tariff refund process in modern US history. However, it has also exposed a divide. Large corporations are recovering funds quickly, while smaller firms struggle to keep up.
