First Tariff Refunds Reach Businesses Starting Tuesday

U.S. Customs and Border Protection will begin sending the first wave of tariff refunds to some businesses on Tuesday, officials said. The refunds cover payments made under tariffs that the Supreme Court ruled the administration lacked authority to impose.

The court decision invalidated tariffs collected under the International Emergency Economic Powers Act. More than 330,000 importers paid a total of $166 billion in these tariffs, according to U.S. Customs and Border Protection. The agency launched an online portal last month that allows companies to file claims for refunds.

As of April 26, at least 75,000 businesses had submitted applications, a court filing showed. A spokesperson for the agency told ABC News that about 15 percent of submitted claims have been rejected, usually because of incorrect information or ineligible shipments.

Several large retailers and manufacturers have estimated the refunds they expect to receive. An analysis by Citi projected that Walmart is due $10 billion, Target is owed $2 billion, Nike is due $1 billion and Macy’s is owed $320 million. General Motors has said it expects to receive hundreds of millions of dollars. The refunds will begin reaching company bank accounts starting Tuesday.

Consumers are not expected to receive direct refunds for higher prices paid during the period the tariffs were in effect. Many companies have indicated they plan to use the money to pay down debt, rehire employees, restock inventory or lower prices.

Shipping companies UPS, FedEx and DHL have said they will refund customers directly for packages that were subject to the tariffs. The tariffs cost the typical American household $700 last year, according to the Tax Foundation.

“The first wave of tariff refunds will reach some American businesses’ bank accounts Tuesday.”