U.S. companies receive tariff refunds ahead of June deadline

The federal government is sending billions of dollars in tariff refunds to U.S. companies this week ahead of a June 30 deadline. One toy manufacturer received a $6.5 million wire transfer from the Treasury Department on Monday morning. The payment covers about 95 percent of the amount the company is owed.

Court ruling and refund process The Supreme Court ruled on February 20 that the president lacked authority under the International Emergency Economic Powers Act to impose the tariffs. The decision makes roughly 330,000 companies eligible for refunds on duties paid for more than 53 million shipments valued at $166 billion.

U.S. Customs and Border Protection stated on June 9 that it planned to transmit $40 billion by the end of June. The agency had already paid out $23 billion at that point.

Company statements The toy company’s chief executive said the payment arrived during peak season for holiday orders. The same company had received a $500,000 partial refund in April and is still owed an additional $400,000. A second lawsuit filed in March by the same legal group challenges a separate set of 10 percent global tariffs that expire on July 24.

The Liberty Justice Center estimates companies will have paid between $35 billion and $50 billion under those tariffs by the expiration date.