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Refunding $166 B Trump Tariffs Could Take Years

New York Times Business •
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On Thursday the Trump administration must brief the U.S. Court of International Trade on how it will return the roughly $166 billion collected under the now‑invalid emergency duties. The court ordered the update after a surge of lawsuits from importers seeking reimbursement for tariffs imposed during the most aggressive phase of the trade war.

The Supreme Court’s February decision unleashed more than 53 million entry records—cars, toys, clothing and other goods—subject to illegal duties. Customs officials estimate processing the refund requests could consume 4,431,161 hours of manual work. An affidavit disclosed that a planned computer upgrade, expected to be operational mid‑April, might cut that effort dramatically, though no firm repayment schedule was provided.

Businesses face mounting pressure as interest on the unpaid duties accrues at roughly $650 million per month, according to court filings. With about 20.1 million entries still pending liquidation, importers risk prolonged cash‑flow strain. The administration’s reluctance to expedite refunds suggests the reimbursement process could extend for years, leaving firms to absorb the cost.

Lawmakers have already begun questioning the Treasury’s capacity, and the court has warned that interest will continue to mount. Until the upgraded system is live and a clear allocation method is issued, importers must continue to pursue individual claims, effectively prolonging the dispute for the foreseeable future.