The administration of US President Donald Trump has refunded about $100 billion in “Liberation Day” tariffs to American businesses, according to a recent court filing by US Customs and Border Protection (CBP).
The refunds represent roughly 60 per cent of the tariff revenue collected under the policy, while billions of dollars in additional repayments remain pending.
According to the filing, nearly $29 billion in potential refunds is still under review by trade authorities, while another $1.6 billion remains unpaid because importers have yet to provide the banking details required to process the payments.
The repayments followed a major Supreme Court ruling in February that found the broad import tariffs introduced by the Trump administration under emergency economic powers were unlawful.
The White House had relied on the 1977 International Emergency Economic Powers Act (IEEPA), which gives the president authority to “regulate” trade in response to a national emergency.
The tariffs triggered opposition from businesses in the US and abroad, with companies warning that the sudden increase in import costs could raise prices for consumers.
Tariffs are taxes imposed on goods entering a country. They are generally paid to customs by domestic importers rather than foreign governments, meaning higher tariffs increase the costs faced by businesses bringing goods into the country.
Companies may then pass some or all of those additional costs on to consumers through higher prices.
Following the Supreme Court ruling, several major US companies have already received substantial refunds.
Amazon, for instance, received about $600 million in tariff refunds during the second quarter, according to its finance chief, Brian Olsavsky.
Speaking during the company’s second-quarter earnings call, Olsavsky said Amazon would pass some of the refunded money on to customers where specific tariff-related charges had been applied, while the remainder would be used to help support lower prices across its stores.
Under US customs rules, however, only importers that directly paid the tariffs are eligible to claim refunds. Any benefit passed on to consumers is therefore left to individual businesses to determine.
The total value of refunds is expected to increase as CBP continues reviewing outstanding claims and importers submit the banking information needed to receive payments.
Following the February court ruling, Trump introduced a temporary 10 per cent universal tariff as an alternative to the invalidated measures.
Those tariffs expired late last month and were replaced by new levies targeting 60 trading partners, with the administration citing concerns that key economic partners had failed to adequately address forced labour.
Erizia Rubyjeana
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