Why 80% of Businesses Are Missing Trump’s $166 Billion Tariff Refunds

The vast majority of businesses eligible for a share of $166 billion in tariff refunds risk receiving nothing — not because the money is unavailable, but because they have not registered for the electronic payment system the Trump administration has made a prerequisite for any reimbursement, Bloomberg reported.

Customs and Border Protection raised the issue in a Tuesday filing at the Court of International Trade in Manhattan, where Judge Richard Eaton is overseeing the government's refund process following the Supreme Court's February ruling that struck down the tariffs as unlawful.

Of the roughly 300,000 firms eligible to receive refunds electronically, only around 57000, approximately 20%, have signed up, CBP said. The agency has been clear that it will not process non-electronic requests.

"CBP continues to issue messaging to the trade community regarding this new requirement and to provide information about how to complete the process to receive electronic refunds," said Brandon Lord, a CBP executive director, in the filing, the report said.

The problem, legal experts say, is not one of intent but of awareness — particularly among smaller importers. Judge Eaton also expressed concern at an earlier hearing about any refund mechanism that places the burden on importers to claim a refund rather than having the government automatically return it using data it already holds.

A hearing on the refund process was held on Tuesday behind closed doors. A further closed hearing is scheduled for 28th April.

Key Background

The Supreme Court struck down Trump's use of the International Emergency Economic Powers Act in a 6-3 ruling, finding that the legislation did not grant the president the authority to impose his sweeping tariff regime. The act ordinarily gives presidents broad powers to impose economic sanctions during periods of national emergency.

The court's ruling was made retroactive, meaning companies affected by the tariffs can apply for refunds — though the court itself acknowledged the process was likely to be something of a "mess."

More than 1,000 companies have since filed suits with the US Court of International Trade seeking to recover their losses, among them FedEx, CVS and Costco. The latter said last month it would look to channel any refunds into lower prices and better value for its customers. Customs and Border Protection has indicated that eligible companies can generally expect refunds within 60 to 90 days.