The Donald Trump administration has already refunded around $100 billion in tariffs it collected before the US Supreme Court struck down most of those duties, according to a court filing reviewed by Reuters.
The refunds were made by US Customs officials and had reached more than half of the total amount collected under the tariffs that were later declared illegal by the Supreme Court.
$100 billion in refunds completed
A filing made by US Customs officials in the US Court of International Trade said that around $100 billion in tariff refunds, including interest, had been completed by the end of July.
The filing said the refunds were processed through the agency’s system and then sent to the US Department of the Treasury for payment.
The filing stated that “refunds (duties plus interest) of approximately $100 billion have been completed using the Consolidated Administration and Processing of Entries Refund component, certified by the agency, and sent to the US Department of the Treasury for disbursement.”
The amount is more than half of the $166 billion that the US government had collected through tariffs that the Supreme Court later struck down.
Refunds are going to companies
The tariff refunds have kicked off a huge political row in the US, with critics alleging that companies that paid the tariffs for importing goods are benefitting from the programme, rather than directly reaching American households.
Democratic Congressman Greg Casar criticised the way the refunds were being handled. “Trump is sending the ‘refunds’ to the companies, not working people. Every single cent of these refunds should go back to American consumers,” Casar said this week.
Importers generally pay tariffs when goods enter the country. The cost can then be passed on to businesses and consumers through higher prices. The refunds are being made to the companies that originally paid the duties.
Supreme Court struck down most of Trump’s tariffs
The Supreme Court ruled against most of Trump’s broad tariffs on February 20.
The court found that the International Emergency Economic Powers Act (IEEPA) did not give the president the power to impose tariffs on imported goods from trading partners on his own.
The ruling was a major legal setback for Trump, who has made tariffs a central part of his economic and trade policy.
Trump had used IEEPA to impose some of his widest-ranging tariffs on goods coming into the US.
Trump continued his tariff push
Despite the Supreme Court ruling, Trump did not back away from his tariff policy.
Instead, he stepped up his trade campaign. Trump also called the Supreme Court justices “disloyal” following the ruling. His administration then introduced new temporary 10% tariffs using a different legal authority. Like IEEPA, that authority had not previously been used by any US president to impose tariffs in this way.
Trump later announced another set of global tariffs under Section 301 of the Trade Act of 1974. Section 301 allows the US to take action against countries over what Washington considers unfair or discriminatory trade and economic practices.