Business owners may have to wade through paperwork, but the US government is now processing refunds for tariffs imposed under Donald Trump. When the Supreme Court struck down these tariffs, many small importers expected refunds to be delayed for years. However, the process is reportedly working.
Approximately 330,000 importers paid over $166bn in tariff fees under the International Emergency Economic Powers Act (IEEPA). Melissa Alvarado Quisenberry, a vice-president at Supply Chain Solutions in Michigan, advises affected businesses to be patient. Her company has been filing refund claims since the federal government confirmed the refund process in late April.
The refund process requires working with the original customs broker—the 'importer of record'—who must apply electronically through the Ace Secure Data Portal. This rule aims to prevent fraud, similar to issues seen with pandemic-era tax credits. Quisenberry notes that switching brokers is difficult, but consulting with another broker is possible.
The first phase covers shipments 'liquidated' within the past 80 days, though some 'unliquidated' shipments are also eligible. Importers must upload a digital file listing eligible entries. While some glitches have occurred, Quisenberry says the process is 'more organised and operational than many expected'. Refunds are expected within 60 to 90 days, with service fees applicable.
Businesses should consider tax implications: tariff deductions taken in 2025 may make refunds taxable in 2026. FedEx, UPS, and DHL have pledged to return refunds to customers, but Amazon, Apple, and Costco have not yet commented. The refund process is now operational and running satisfactorily.
