The US government is refusing to refund billions in tariffs it illegally imposed under emergency powers, according to the Financial Times. Companies are being denied reimbursements for duties levied under the International Emergency Economic Powers Act (IEEPA), which the Supreme Court ruled President Trump lacked authority to invoke. This leaves businesses in limbo, potentially pushing hundreds of thousands of refund claims into court.

The Treasury Department estimates the tariffs generated up to $150bn, a figure the administration is fighting to retain. Companies paid estimated duties, but Customs and Border Protection (CBP) is now rejecting their attempts to reclaim funds through administrative corrections. CBP is also suspending protests seeking refunds for liquidated entries, narrowing avenues for recovery.

Lawyers warn this uncertainty is unprecedented, advising clients to pursue lawsuits alongside paperwork. The Court of International Trade has already ordered CBP to stop finalizing IEEPA tariffs, creating a potential refund path, but the government is expected to appeal, delaying resolution. The scale of the refund task, involving millions of entries, is described as 'unprecedented' by the government, though lawyers argue CBP's systems can handle it.