Trump Administration Begins Refunding $166 Billion in Illegally Imposed Tariffs

The United States federal government has initiated the refund process for approximately $166 billion in tariffs imposed by the Trump administration in 2025 under the International Emergency Economic Powers Act (IEEPA). This action follows a landmark Supreme Court ruling in February 2026, which declared that the administration lacked the legal authority to levy these duties. As of May 2026, the government has approved nearly 87,000 refund requests covering over 15 million tariff payments. More than half of these claims have been processed, amounting to $35.5 billion in refunds including interest. Importers, such as small business owner Sarah Wells, have begun receiving electronic deposits via the Automated Commercial Environment (ACE) portal. Customs and Border Protection officials confirm that all refunds are executed exclusively through ACH wire transfers, with no checks issued. The rapid deployment of the digital refund system has been noted by industry leaders like Flexport CEO Ryan Peterson. While significant funds have been disbursed, the total liability remains substantial, impacting international trade dynamics and providing financial relief to businesses previously burdened by the invalidated tariffs on imports from countries like China and Cambodia.