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CBP to Launch 45-Day Refund System After Court Orders Repayment of Illegal Trump Tariffs

A 24-state coalition has separately sued to block the administration’s new 10% duties imposed under the 1974 Trade Act.

Overview

  • The U.S. Court of International Trade ordered Customs and Border Protection to recalculate import values without the invalid IEEPA tariffs and refund overpayments with interest.
  • In a filing to the court, CBP said it will roll out a streamlined refund process within 45 days designed to reduce documentation burdens for importers.
  • CBP warned that without a new system the refunds could require manual review of more than 70 million entries and an estimated 4.4 million labor hours.
  • More than 300,000 importers are affected, roughly 2,000 refund lawsuits are pending, government receipts tied to the unlawful tariffs exceed $130 billion, and importers report $166 billion in duties paid.
  • As refunds proceed, the administration has imposed a 10% global tariff under the 1974 Trade Act and indicated it may raise the rate to 15%, while 24 states have filed suit to halt the new measures.