The federal government could owe $175 billion in refunds for tariffs.
Judge Richard Eaton of the U.S. Court of International Trade has ruled that companies impacted by trade tariffs are entitled to refunds from the federal government. Reports suggest that the government could owe refunds totaling more than $175 billion. Under the judge’s orders, the U.S. Customs and Border Protection (CBP) agency, which collects the tariffs, is tasked with implementing a method and timeline to process the refunds.
U.S. Customs and Border Protection’s Office of Trade Executive Director Brandon Lord wrote, “In accordance with applicable law, any validated refund of IEEPA [1977 International Emergency Economic Powers Act] duties would include interest.” Early estimates suggest that any delay in refunding tariffs may cost the federal government $23 million per day in interest.
“Regardless of entry type and liquidation cycle, CBP still requires a review period to ensure no violation of other Customs laws and no other duties, taxes, or fees are owed,” Executive Director Lord added.
The Supreme Court ruled last month that President Donald Trump was not authorized under the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping, reciprocal tariffs. They reasoned that the power of taxation and tariffs belongs exclusively to Congress.
The U.S. Court of Appeals for the Federal Circuit denied the president’s administration’s request to delay the refund process.
As the Lord Leads, Pray with Us…
- For wisdom for federal judges as they rule on issues of trade and the federal balance of power.
- For God to direct the president and federal officials as they craft trade policies that impact the American people.
- For Executive Director Lord to be discerning as he works out the process for federal refunds.
Sources: Forbes, Newsweek, CBS News, Cato Institute, Politico, AP News
