President Donald Trump
The long wait for tariff refund in America now seems to be ending. After the Supreme Court declared the tariffs imposed by the Donald Trump administration illegal, the process of refunding about $166 billion has now started. According to the documents filed in the court, the first installment can be released from May 11. This is expected to provide relief to lakhs of importers, who were waiting for their money to be returned for months.
After the tariffs imposed by the Donald Trump administration were declared illegal, the refund process is now progressing rapidly. According to documents filed in the US Court of International Trade, the first payment installment can be released from May 11. Judge Richard Eaton, who is monitoring the process, said that some import entries have already reached the refund stage. Specifically, about 3% of the entries related to tariffs imposed under IEEPA have been processed through the CAPE system and are now being paid by the US Treasury.
According to the documents, about 21% of the entries have been accepted for removal of duty. As of April 26, approximately 17.4 lakh entries have been liquidated and are in the refund process. This entire exercise is being done on a very large scale, which includes about 5.3 crore entries of more than 3.3 lakh importers. The total refund amount could reach $166 billion.
Therefore the money will have to be returned
This situation arose when in February the US Supreme Court declared the Trump administration’s tariffs illegal in a 6-3 majority verdict. The Court held that the President overstepped his authority under the IEEPA, as the law is designed primarily to impose sanctions and asset freezes, not blanket tariffs. According to the Constitution, Congress has the right to impose tariffs.
After this decision, many companies and states, who had fought a legal battle against these tariffs, heaved a sigh of relief. These included everyone from small importers to family businesses. During the hearing, the judges of the Supreme Court also raised questions on whether trade deficit could be considered a national emergency and tariffs could be imposed.
Trump’s tariff policy
Tariff policy remained an important part of the US economic strategy during the Trump administration. Especially in the second term, these tariffs had shaken global trade. Tariffs imposed on countries like China, Canada and Mexico increased tension in international relations and created uncertainty in the markets.
According to US Treasury data, custom duty collections reached a record $195 billion in fiscal year 2025, of which $133 billion was collected under IEEPA. Now a large amount of this may have to be returned. At present, all eyes are fixed on May 11, when the first installment is expected to be released. If this happens, it will prove to be a big relief for the American business world.
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