Trump administration signals it will offer broad tariff refunds. That could mean millions for companies.
The Trump administration’s stance on reinstating all tariffs declared illegal by the Supreme Court has been slow to take shape. However a new court file Last week, it seemed to be accepted that a wide range of tasks would eventually be eligible for reimbursement.
At issue is the difference between so-called liquidated and non-liquidated tariffs.
This legal distinction is vital for importers and could be worth millions of dollars as companies try to recover taxes they illegally collected under the 1977 International Emergency Economic Powers Act (IEEPA).
The government’s filing last week also said it was moving forward with a four-step process that could take approximately 45 days to review and process applications once operational.
Read more: What Trump’s tariffs mean for the economy and your wallet
President Trump speaks at a White House press conference in February to discuss the Supreme Court’s decision against his tariffs. (Mandel NGAN/AFP via Getty Images) ·MANDEL NGAN via Getty Images
“Theoretically, this development provides the answer many importers are looking for,” Greg Husisian of Foley & Lardner told Yahoo Finance. He said the administration’s amended order “effectively places all of the IEEPA entries within the Court’s reimbursement framework.”
In other words, this means that prepaid tariffs that are currently in three different states (not liquidated, liquidated but still within the protest period, and liquidation considered final) may eventually be eligible for a refund.
In the trading context, “liquidations” refer to the final calculation of tariffs owed and are often viewed as a kind of final stamp. The transaction needs to be done within one year after the goods are imported and the duty is first levied, but it usually happens sooner, in the range of 10 to 11 months.
This divestment issue had led to preemptive lawsuits from companies as far back as 2025, long before the Supreme Court confirmed in February that tariff refunds would be possible when Trump struck down general IEEPA mandates.
This week’s filing was the latest concession from the Trump administration, encouraging trade lawyers who are preparing for a complex refund process on several fronts.
There has been a growing perception that comprehensive refunds, including fully liquidated tariffs, are possible.
“If the government were going to fight on this issue, I would expect them to state the same thing in this dossier,” Erik Smithweiss, a partner at the firm GDLSK who focuses on commercial issues, said in an interview. he said.
He represents clients seeking refunds and said he was relieved by this latest statement, but cautioned that it “doesn’t stop the Department of Justice from one day saying ‘we’re not building this process, we don’t think it’s legally authorized’ and pushing for litigation on this issue.”
Immediately after the Supreme Court’s decision in February, President Trump told reporters that he believed the refunds should be litigated “over the next two years,” but that he had not publicly considered the refund issue in recent weeks.
A cargo ship was seen at the Port Jersey container terminal in Jersey City, New Jersey, in January. (CHARLY TRIBALLEAU/AFP via Getty Images) ·CHARLY TRIBALLEAU via Getty Images
This week’s government filing was written by Brandon Lord, executive director of the trade program at U.S. Customs and Border Protection. It revealed how the first iteration of the portal, through which companies would apply for refunds, could handle around 63% of all inflows.
It is promised that liquidation is considered final and guidance for the remainder, which includes tariffs in what are described as “more complex repayment scenarios”, will be published soon.
The application also stated that four elements for “phase 1” of the refund portal — a claim step, a processing step, review of refund findings, and the final payment step — are between 60% and 85% complete.
One follow up this weekThe chief judge presiding over the case said the government was “on track” to meet an April 20 deadline to begin accepting refund applications.
“Customs continues to make satisfactory progress,” said Richard K. Eaton, Senior Judge of the U.S. Court of International Trade in Manhattan, in requesting further updates on April 14.
The United States Court of International Trade hearing in Lower Manhattan is scheduled for May 2025. (Spencer Platt/Getty Images) ·Spencer Platt via Getty Images
One Warning to customers from Snell & Wilmer company He struck an optimistic tone, stating that the explicit inclusion of liquidated entries ensures that “importers will not run out of statute of limitations on recovering IEEPA tariff refunds for imports that have reached final liquidation.”
‘Uncertainty continues’
The developments come as consumers are also turning to a direct piece of possible refunds.
The government estimates the refunds could total about $166 billion, and at least 17 cases Lawsuits have reportedly been filed against companies, including FedEx (FDX), Costco (COST) and UPS (UPS), by consumers who say it would be wrong for the companies to keep the money they get back.
A Costco Wholesale sign was seen in San Diego, CA in March. (Kevin Carter/Getty Images) ·Kevin Carter via Getty Images
But many questions remain unanswered.
In his note last week, Husisian said other issues remained unclear, such as how the process would proceed nationwide and whether it would be important for a company to file a preemptive lawsuit.
Additionally, there is always the chance for other courts to intervene on questions such as whether administrative protests by companies will be required to receive refunds.
“Look, there’s still some uncertainty down the road,” Smithweiss said. He still recommends that companies take multiple steps (administrative protests or even litigation) “just to be on the safe side.”
Ben Werschkul is Yahoo Finance’s Washington correspondent.
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