US Speeds Up Tariff Refunds Electronically

U.S. Customs and Border Protection will implement an all-electronic refund process starting in February, enhancing the speed and ease of claims. This initiative aligns with a broader federal strategy to phase out paper payments, with the Treasury Department ceasing most paper check refunds on February 6, 2026. This transition occurs as the nation awaits a pivotal Supreme Court ruling on the legality of tariffs imposed under the Trump administration.

A potential Supreme Court decision striking down these tariffs could trigger refunds amounting to tens of billions of dollars. The court is reviewing the validity of 10% baseline tariffs and steeper duties on specific countries, initially enacted using emergency powers. A federal appeals court had previously found the president exceeded his authority.

Importers have already paid over $133 billion in these levies. Experts anticipate that processing any large-scale refunds for these tariffs will be a lengthy undertaking. Businesses like Balsam Brands, which paid an estimated $15 million in tariffs, have also incurred significant supply-chain modification costs, with millions of dollars unlikely to be recovered regardless of the court's verdict.