As critics of Donald Trump’s war in the Middle East complain about gas prices and the costs of everyday goods remaining high, the federal government hopes to curry favor by sending tariff refunds into Americans’ wallets.
However, there is a massive catch: the ‘wallets’ in question belong to big business, not the struggling public.
Companies can officially start filing for tariff refunds today as they send back $166 billion in Trump’s import duties, likely being one of the largest repayments to import business owners in American history.
US Customs and Border Protection is launching a new claims process that will let importers request reimbursement of tariff costs for their firms.
This move follows the Supreme Court’s February ruling that Trump’s policy to enforce tariffs was not authorized, stating that it is up to Congress, not the Executive Branch, to enforce these taxes.
That ruling allowed the lower courts to force the federal government’s hand into returning those funds. The Supreme Court ruled in February that the law Trump relied on for his signature policy did not authorize the imposition of tariffs, finding that Congress – not the president – holds authority over such taxes.
The decision set the stage for lower courts to order the government to reverse course and return the funds.
As for how much could be returned, the impact is significant.
Donald Trump signed an executive order on tariffs in the Rose Garden at the White House on April 2 last year. US Customs and Border Protection is launching a new claims process that will let importers request reimbursement of tariff costs for their businesses
The Supreme Court ruled in February that Trump’s policy to enforce tariffs was not authorized
Rising costs are linked to the ongoing conflict in the Middle East, which is increasing oil prices, along with the continued impact of tariffs
When Trump introduced tariffs last spring, he promised they would ‘make America wealthy again
According to court filings, more than 330,000 importers paid tariff taxes on over 53 million shipments. Starting tonight, any company or its brokers can log onto the CBP’s new refund ‘automated commercial environment’ portal and request their refund.
CBP says refunds that check out will take about 60 to 90 days to hit their bank accounts, although more complicated cases could take even longer.
The process will likely be difficult given the scope of the returns and the sheer number of businesses impacted. CBP noted that their system was not created to handle that number of claims. That means some submissions may require manual processing.
When Trump introduced these tariffs last spring, he promised they would ‘make America wealthy again.’
Tariffs are taxes on imports, so Trump’s trade policies so far this term have impacted companies that primarily import foreign goods. For these businesses, the way to absorb the cost was to either pay the tax themselves, cut back elsewhere, or raise prices, thereby impacting consumers.
However, the catch is, only businesses that officially paid these tariffs will be able to get that money back – not the millions of Americans who paid higher prices for items they bought.
One user on X pointed this out, saying: ‘American consumers paid these taxes through the price of goods, and that money was used to benefit the American people! Now that the court has ruled this way, that money goes to the importers, and American consumers lose money.’
A second person on X inquired who would be prioritized. ‘If this rollout is limited to select importers first, the real question is who gets priority and who waits,’ they wrote.
Tariffs are taxes on imports, so Trump’s trade policies so far this term have impacted companies that primarily import foreign goods. For these businesses, the way to absorb the cost was to either pay the tax themselves, cut back elsewhere, or raise prices, thereby impacting consumers
As critics of President Trump’s war in the Middle East complain about gas prices and the costs of everyday goods remaining high, the federal government hopes to curry favor by sending tariff refunds into Americans’ wallets
A third user called it a ‘double-tax.’ ‘We paid the tariff tax and will pay for the tax refunds on the tariff tax charged,’ they complained.
Meanwhile, Trump has once again ramped up the rhetoric towards Iran over the weekend, leaving markets to deal with the fallout on Monday morning.
Brent crude plunged as much as 13 percent to $86 a barrel last Friday as Iran said it would reopen the Strait of Hormuz. But after another weekend of escalation and closure of the key waterway by the Iranians, it is back up to $95 a barrel.
Trump said he was sending envoys for peace talks in Pakistan and would launch new strikes on Iran unless it accepts his terms.
The ceasefire, which was due to run until Tuesday, is also in doubt after the US seized an Iranian cargo ship and Tehran threatened to retaliate.
