U.S. Customs Begins Refunding Tariffs Ruled Unauthorized by Supreme Court

The U.S. Customs and Border Protection (CBP) has initiated the process of refunding tariffs collected under authority later ruled unauthorized by the U.S. Supreme Court. The tariffs, imposed last year using the International Emergency Economic Powers Act (IEEPA), affected various imports.

The Supreme Court determined in February that the administration lacked legal authority to impose these duties via IEEPA. This week, CBP opened an online portal for companies to submit tariff receipts and request refunds. The agency stated that importers and brokers should expect refunds within 60 to 90 days, though some cases may take longer.

The initial phase covers only goods that have not completed the duty-paying process, accounting for about 63 percent of affected imports, according to information provided to the Court of International Trade in March.

firms have announced plans to facilitate refunds for their customers. FedEx stated that if it receives refunds from CBP, it will issue them to shippers and consumers who paid the charges. UPS indicated it will request refunds on behalf of customers and then distribute them to the original payors.

Other businesses are also addressing potential refunds. Costco's CEO said in March that the company would attempt to pass along any refunds through lower prices, though tracking exact impacts on individual items is challenging due to tariff complexity.

from the Federal Reserve and Columbia University published a paper in February showing that U.S. consumers bore 94 percent of the tariff costs, with prices of affected goods rising 11 percent more than unaffected goods. Refunds are legally directed only to importers of record.

The administration has replaced the IEEPA tariffs with new ones under the Trade Act of 1974 and is pursuing additional tariffs under other authorities. The White House has encouraged businesses not to seek refunds for the previous tariffs. With new tariffs in place, which the administration described as potentially larger, companies are preparing for ongoing costs.

This environment may reduce the likelihood of widespread consumer relief from the refunds.