The US Supreme Court is set to hear arguments in November on whether President Donald Trump's country-based tariffs are legal, with a potential ruling that could force the government to refund a large portion of the $165 billion in customs duties collected this fiscal year.
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If the tariffs are struck down, importers could face a bureaucratic struggle to reclaim payments, as refunds are typically slow, reliant on paper checks and tied to complex filing requirements. Experts warn that without streamlined processes, millions of individual refund checks may need to be issued.
Customs and Border Protection and the Treasury Department would be responsible for repayments, but challenges include outdated systems, risks of mail theft, and disputes between importers and couriers such as UPS and FedEx, which often act as the importer of record.
Some companies doubt they will ever see refunds. Harley Sitner, owner of Seattle-based Peace Vans, described tariff payments as a "sunk cost", citing unexpected charges that made him halt overseas imports.
While experts suggest automated systems could simplify repayments, others predict the administration may require businesses to file protests or lawsuits. If the court rules against Trump, the White House is expected to quickly seek new legal grounds to reinstate tariffs.
Source: www.ttnews.com