Trump tariff refunds worth $166B may begin by May 11
What's the story
The Trump administration is gearing up to issue its first round of tariff refunds, starting around May 11. The move comes after a US Supreme Court ruling that deemed the extensive duties imposed by President Donald Trump as illegal. Judge Richard Eaton, who is overseeing the refund process, revealed that some affected import entries have already entered the repayment phase. The refund process could be massive, covering $166 billion in duties collected from over 330,000 importers across 53 million entries.
Refund process
New system for refunds
The refund process is being handled by a new system called Consolidated Administration and Processing of Entries (CAPE). So far, some 3% of entries subject to tariffs under the International Emergency Economic Powers Act (IEEPA) have been liquidated through this system and are now in the refund phase. The filing also noted that about 21% of entries have been approved for duty removal under CAPE.
Legal challenges
Supreme Court's ruling against Trump's tariffs
The Supreme Court's 6-3 ruling against Trump's tariffs was a major blow to his administration's trade policy. The court found that the president had overstepped his authority under IEEPA, a law typically used for sanctions and asset freezes, not broad-based import taxes. After the ruling, Trump called it a "terrible" and "totally defective" decision but responded by imposing a new 10% global tariff.