US refunds $100bn in tariffs to firms under 'Liberation Day' scheme

Washington has returned approximately $100 billion to co…

Washington has returned approximately $100 billion to companies that paid duties under the controversial 'Liberation Day' tariff program, a figure that accounts for about 60 percent of the total revenue collected through the initiative. The repayment process, which began earlier this year, has faced criticism for its slow pace, with billions of dollars in additional claims still pending review.

The refunds, which were mandated by a federal court ruling that deemed the tariffs unlawful, have been processed through the Customs and Border Protection agency. Businesses that filed timely protests against the duties have started receiving their money, but many smaller firms report delays and complex paperwork requirements, according to trade attorneys familiar with the process.

The 'Liberation Day' tariffs, introduced in 2025 under the previous administration, applied broad levies on imports from dozens of countries, including major trading partners such as the European Union, China, and Canada. The policy was framed as a way to protect domestic industries, but it drew sharp opposition from business groups and economists, who argued that it raised costs for consumers and disrupted supply chains.

Following the court's decision, the government initially…

Following the court's decision, the government initially resisted issuing refunds, citing administrative challenges and potential fiscal impacts. However, after several rounds of litigation, the administration agreed to expedite payments, starting with the largest claims. To date, more than 400,000 businesses have received refunds, with the average payout exceeding $250,000.

Despite the progress, trade experts note that the remaining $60 billion in unrefunded duties could take months to process, particularly for complex cases involving multiple product categories or contested valuations. Some companies have also reported that the refund amounts were reduced due to interest calculations, prompting further legal challenges.

In response to the ongoing issues, the Treasury Department announced it would hire additional staff to handle appeals and simplify the application process for small businesses. Officials say they are committed to completing all valid refund requests by the end of the fiscal year, though they declined to provide a specific timeline.

The repayment effort has become a significant political

The repayment effort has become a significant political issue, with lawmakers from both parties calling for greater transparency and faster action. Meanwhile, some economists argue that the refunds, while welcome, do little to offset the long-term damage caused by the tariff policy, which they say weakened international trade relationships and increased uncertainty for U.S. exporters.