First wave of tariff refunds will hit some businesses tomorrow
More than 330,000 importers paid the $166 billion in tariffs.
The first wave of tariff refunds will reach some American businesses’ bank accounts Tuesday, according to U.S. Customs and Border Protection (CBP).
The government launched an online portal last month where companies can file to get money back for tariffs they paid that were ruled illegal by the Supreme Court, which said the administration exceeded its authority.
More than 330,000 importers paid the tariffs, collected under the International Emergency Economic Powers Act (IEEPA), totaling $166 billion, CBP said.
As of April 26, at least 75,000 businesses have applied for refunds, according to a court filing.
Trump has railed against the Supreme Court's 6-3 ruling in the case, including two of the justices he appointed in his first term, Neil Gorsuch and Amy Coney Barrett. In April he said he would "remember" companies that didn't seek a refund.
A CBP spokesperson tells ABC News about 15% of the claims that have been submitted were rejected, typically due to incorrect information or ineligible shipments being included on a claim.
In recent weeks, major companies like General Motors have said they expect hundreds of millions of dollars back in refunds. An analysis by Citi last month found Walmart is due $10 billion, Target is owed $2 billion, Nike is due $1 billion and Macy’s is owed $320 million.
But while the money will start flowing to businesses, consumers should not expect to see direct refunds. Many companies have said they’ll use the refunds from the government to pay down debt, rehire employees, restock inventory or perhaps lower prices.
It’s less likely they will contact shoppers who paid higher prices over the past year to give money back for those purchases.
Shipping companies UPS, FedEx and DHL have said they will refund customers directly for packages that were subject to IEEPA tariffs.
The IEEPA tariffs alone cost the typical American household $700 last year, according to the nonpartisan Tax Foundation.
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