US prepares to process refunds for Trump tariffs
The US Customs and Border Protection (CBP) agency is preparing a system for processing refunds for Trump’s tariffs after they were ruled illegal.
Donald Trump speaking following the Supreme Court ruling on the illegality of his IEEPA tariffs
Source: The White House
A filing to
the Court of International Trade made by Brandon Lord, executive director of
the Trade Programs Directorate at the CBP on 6 March addressed the process
planning for refunding a reported $166 billion in tariffs collected under the International
Emergency Economic Powers Act (IEEPA). Lord said the system will require “minimal
submission from importers” ad be ready in 45 days. He added that as of 4 March,
more than 330,000 importers made a total of more than 53m entries with the
customs agency.
He said the
system will “also minimise errors by ensuring accurate IEEPA refund
calculations through system validations and allowing for a review period for CBP
to resolve any discrepancies with the importer and to confirm no other
outstanding enforcement issues or no revenue is owed”.
While it
may be a relief to automotive supply chain firms who have been subject to the
tariffs, it is likely to be a more complicated process than Lord suggested, as
section 232 tariffs including tariffs on imports of car parts and finished
vehicles still stand. The tariff refunds will have to be calculated based on whether
or not parts are included in IEEPA or section 232, and will no doubt add uncertainty
to an already confusing situation.
On top of
this wrinkle, the CBP only issues refunds electronically through its computer
system ACE, but most importers have not completed signing up for the electronic
system, with just more than 21,000 out of more than 330,500 importers having
signed up. Lord said that until importers complete the process to receive refunds
electronically, they will be rejected.
Automotive
logistics and supply chain firms that have filed lawsuits
While the new system in theory means that companies will not have to sue the US government to receive refunds on IEEPA tariffs paid, some firms have already filed lawsuits.
Chinese
carmaker BYD filed a lawsuit against the US government on 26 January this year,
challenging Donald Trump’s authority to impose tariffs under IEEPA and
requesting a refund for all tariffs paid since April 2025.
Similarly,
Goodyear Tires filed a suit at the US Court of International Trade in December
last year, while Yokohama Tire and Toyota subsidiaries filed separate suits
challenging the IEEPA tariffs and their legality in November 2025.
