Trump's 'Liberation Day' tariff refunds hit $100bn
Donald Trump's administration has paid back $100bn (£78bn) in "Liberation Day" tariff refunds to businesses through US customs officials. This represents roughly 60% of all
Donald Trump's administration has paid back $100bn (£78bn) in "Liberation Day" tariff refunds to businesses through US customs officials. This represents roughly 60% of all tariff revenue collected by the government under the policy, according to a recent court filing, external from US Customs and Border Protection. However, a significant chunk of money remains unpaid. Nearly $29bn in potential refunds is undergoing review by trade authorities, while another $1.6bn remains stuck because importers have not yet supplied their banking details.
The repayments follow a major Supreme Court decision in February, in which judges ruled that broad import tariffs introduced under economic powers were unlawful. The White House had cited a 1977 law, the International Emergency Economic Powers Act (IEEPA), which gives the president power to "regulate" trade in response to an emergency. But the measures sparked outcry at home and abroad from firms facing an abrupt rise in taxes on shipments entering the US, and fuelled worries that the levies would lead to higher prices.
Since the Supreme Court decision, several major American corporations have already claimed large sums back. Amazon received approximately $600m in refunds during the second quarter, according to finance chief Brian Olsavsky. Olsavsky said on the company's second quarter earnings call that Amazon would pass some money back to customers where specific charges were applied, and the remaining funds would be used to support lower store prices.
The overall tariffs payout is expected to rise further as US Customs continue to review pending claims and importers update their banking details.
The BriefWire