By: Schonn Elcock
Amid multiple sources of pressure ranging from a Supreme Court loss, major business and industry pushback, and consumer mistrust, the Trump administration took its first steps toward returning more than $166 billion collected from tariffs on April 20, according to The New York Times (NYT).
Due to the administration’s use of the International Emergency Economic Powers Act (IEEPA), which authorizes the United States (U.S.) President to regulate or prohibit foreign commerce and transactions; these tariffs have been dubbed the IEEPA Tariffs, according to Avalara.
After the tariffs were struck down, the administration attempted to slow the process by submitting a series of complaints to the Supreme Court. Notably, President Donald Trump urged the Supreme Court to hold off on the refund. He asserted that the process would cause another “Great Depression,” in a Truth Social post from Aug. 2025, but economists widely rejected the claim, according to CNBC.
In an article by AP News, “Trump’s Justice Department had urged the Federal Circuit to proceed cautiously and hold off for 90 days. But the judges refused.”
By mid-December of 2025, the government had collected over $130 billion from tariffs and was currently looking to be held liable for proceedings exceeding $175 million. However, the Trump administration remains solid in its stance of pushing for the stall and its dedication to tariffs.
Alongside the dissolution of IEEPA Tariffs, the Trump administration imposed a temporary 10% tariff on all global imports under Section 122 of the 1974 Trade Act. As well as a new trade investigation into China, Mexico, the European Union, and more than a dozen other economies, to replace the IEEPA tariffs under Section 301 of the Trade Act of 1974.
According to CNBC, Section 301 of the Trade Act of 1971 permits the U.S. to impose tariffs on imported goods from other nations found to have engaged in unfair trade practices.
The refund seems to be a benefit for all buisnesses who used international imports under the IEEPA tariff, allowing for major financial relief, according to The New York Times.
The aforementioned tariffs had been a heavy burden for companies that rely on foreign goods, according to The New York Times. Businesses like FedEx, Costco, and many others were forced to choose whether to absorb the financial burden, cut costs, or pass on the expenses to consumers.
The portal opened on April 20, and refunds are looking to be upwards of $160 billion. Companies have begun submitting documentation to the government, kickstarting the process of gaining the money they have lost from paying these illegal tariffs.
The expected timeframe for issuing the refund is around 60 to 90 days, according to the NYT. Many business owners remain pessimistic, feeling unlikely the government will actually refund the tariff expenses within that time period.
In the article, Cassie Abel, the Founder and Chief Executive of Wild Rye, said, “I wouldn’t say I’m at all optimistic that they are going to come in a timely manner.”
Although companies that paid the tariffs will get their money refunded, who will pay back the consumers?
Due to the tariffs, companies raised prices at the consumers’ expense. Yet there is no plan underway to pay back the consumers who paid for these unlawful tariffs. The extent to which consumers may see gains relies on how each business decides to share its proceeds.
“While 12 of the 25 chief financial officers said their company plans to apply for tariff refunds, none said they intend to directly share that money with customers. Six of those polled said they did not plan to pass on any portion of the tariff refunds they might receive, seven were not sure, and 12 answered ‘not applicable,’” stated a survey done by CNBC.
“Due to the heavy toll U.S. businesses had to incur in the form of higher costs and supply chain adjustments, many CFOs [Chief Finance Officers] think of the tariffs as a form of compensation instead of extra revenue, enabling them to hold onto the cash instead of distributing it to consumers.”
When it comes to this large pool of proceedings, the American people remain unable to get a hold of their fair share. However, not all efforts to push for a refund have been stalled, as bipartisan support to achieve unity on this issue continues.
Although no legislation has been approved yet, several tariff refund bills have been introduced in Congress. Senator Josh Hawley, R-MO, introduced the American Worker Rebate Act of 2025 last year, and Senator Martin Heinrich, D-N.M, introduced a bill in March that would create a tax rebate. A bill that would serve as a reimbursement for overpaid taxes or special government payments, intended to help those who were hit harder by higher costs, according to CNBC.
As efforts to help Americans from both sides of the political spectrum continue to proceed, there is hope for more bipartisan decisions with the well-being of Americans in mind. Both republican- appointed and democrat- appointed judges supported the idea that the IEEPA tariffs were unlawful, helping pave the way for refunds to begin.