Explainer-How Will Companies Get Refunds Now That the US Supreme Court Has Rejected Trump’s Tariffs?
WILMINGTON, Delaware, Feb 20 (Reuters) – The U.S. Supreme Court said on Friday that tariffs imposed by President Donald Trump under an economic emergency law were illegal. The court did not say how the government should refund the illegal tariffs, worth an estimated $175 billion. When asked about refunds, Trump said at a press conference that “we’ll end up being in court for the next five years.” HOW ARE TARIFFS COLLECTED? For nearly all goods subject to tariffs, an importer posts a bond with the Customs and Border Protection agency and pays an estimated tariff on the merchandise to bring it into the United States. The government makes a final determination of the tariffs on those goods, a process known as liquidation, which usually happens 314 days after entry of the goods. Excess payments are refunded or the importer must cover the shortfall. Importers filed suit at the U.S. Court of International Trade to try to stop the process of determining final tariff payments while the Supreme Court was considering the case, but that court …
