Tariffs refund process won't be simple

A mix of agencies and courts will decide how to return money to affected importers.

- BY PAUL WISEMAN

ALLEN J. SCHABEN Los Angeles Times TRUCKS travel along the Vincent Thomas Bridge over the Port of Los Angeles.

As the Supreme Court struck down President Trump's biggest tariffs, the justices left a $133-billion question unanswered: What's going to happen to the money the government has already collected in import taxes now declared unlawful?

Companies have been lining up for refunds. But the way forward could prove chaotic.

When the smoke clears, trade lawyers say, importers are likely to get money back — eventually. “It’s going to be a bumpy ride for a while,” said trade lawyer Joyce Adetutu, a partner at the Vinson & Elkins law firm.

As the contours of the challenge begin to take shape, Trump on Saturday announced he planned to increase to 15% from 10% the new tariffs he announced after his Supreme Court defeat, using a different legal authority.

The refund process is likely to be hashed out by a mix of the U.S. Customs and Border Protection agency, the specialized Court of International Trade in New York and other lower courts, according to a note to clients by lawyers at the legal firm Clark Hill.

“The amount of money is substantial,” Adetutu said. “The courts are going to have a hard time. Importers are going to have a hard time.”

Still, she added, “it’s going to be really difficult not to have some sort of refund option” given how decisively the Supreme Court repudiated Trump’s tariffs.

In its 6-3 opinion on Friday, the court ruled Trump's attempt to use an emergency powers law to enact the taxes was not valid. Two of the three justices appointed by Trump joined the majority in striking down the first major piece of his second-term agenda to come before them.