US activates refund system for $166bn Trump tariffs struck down by Supreme Court

The United States has begun rolling out a refund mechanism for more than $166 billion in tariff revenue collected under policies imposed by President Donald Trump that were later invalidated by the Supreme Court of the United States.

The process was formally activated Monday by U.S. Customs and Border Protection, which has launched the first phase of a digital system allowing importers and customs brokers to submit claims for reimbursement of duties and deposits previously paid.

Officials estimate the refund framework could potentially cover more than 330,000 importers linked to over 53 million shipments, reflecting the broad exposure created by the now-overturned tariff regime.

In the initial phase of deployment, around $127 billion in duty payments has been identified as eligible for electronic refunds, with authorities stating that approved claims will generally be processed within 60 to 90 days.

The refund mechanism follows a February ruling by the Supreme Court that struck down a wide range of tariffs imposed under the International Emergency Economic Powers Act. The law had been used to impose broad tariffs on US trading partners after Trump returned to office last year.

Despite the ruling, certain sector-specific tariffs remain unaffected, including duties on steel, aluminum, and automobiles, which continue to stay in place.

The decision has already triggered a wave of litigation, with thousands of companies filing claims at the United States Court of International Trade seeking recovery of tariff payments made during the enforcement period.

Market participants say the eventual distribution of refunded funds to end consumers will depend on corporate policy, with some firms indicating they will pass on reimbursements. Logistics company FedEx has said it intends to refund tariff-related charges to shippers and consumers who originally bore the costs.