While the Trump administration has begun the process that would enable the refund of $166 billion in tariffs that have been declared illegal, United States importers are still not sure of a quick repayment.
The “reciprocal” tariffs President Trump imposed on most United States trading partners last year – including 30% on South African products – were invalidated by the US Supreme Court earlier this year. While the top court was silent on the issue of refunds, the country’s international trade court has ordered the government to return the money to importers.
The US government has taken the first steps to do so, and has begun accepting requests for refunds, the New York Times reports. But the newspaper also says President Trump is opposed to returning the money and his administration may appeal against the trade court ruling, leaving importers uncertain about their prospects of getting any refunds.
The administration estimates that, by March this year, more than 330 000 importers had paid invalidated tariffs on more than 53 million entries.
Refunds, if they happen, will go only to businesses, because it is they who paid the tariffs. Some of the increased costs were also passed on to American consumers, but whether consumers will benefit from any refunds remains to be seen.
Additional tariffs may be on the way. The New York Times says the Trump administration has opened investigations into dozens of other countries’ trade practices under a provision of the 1974 Trade Act.
“Those inquiries are expected to result in tariffs similar in magnitude to those that the Supreme Court struck down. Mr. Trump has already applied a temporary 10 percent tariff on most imports using another section of the 1974 law,” it stated.
