U.S. Customs and Border Protection (CBP), which is managing the refund process, launched a portal for businesses to apply on Monday morning, with refunds expected to take two to three months.
Read more: How Businesses Can Apply for Tariff Refunds Through New Portal
More than 3,000 businesses, including high-profile plaintiffs FedEx, Costco, Skechers, Revlon, Toyota, and Nintendo of America, have already sued the Trump administration in hopes of securing refunds, a sign of their confidence in the tariff’s illegality.
“As soon as that news came out, I was very on the ball with updates and knowing exactly what I needed to do, so I was ready to go today, as soon as the portal opened up for applications,” he tells TIME. While he knows of other small business owners who received errors on the refund portal due to high traffic, he said he was able to apply for the refund using a single spreadsheet within 1 minute of the site opening.
“We’ve got Section 122, tariffs that just came in, which expire in July, and they're expected to be replaced with new Section 301 tariffs for who knows how much, and against what countries. So, this money is going to be saved for a rainy day to deal with whatever comes a few months from now,” he says. “Not to mention, with a war going on, all of our shipping costs went way up because of oil prices.”
But she is also concerned about additional headwinds to come from other tariffs imposed by Trump.
While she appreciates the possibility of a refund, she says it doesn’t help her with “rehiring American workers” after she was forced to lay off employees last year.
Who is eligible for the refund?
Tariff refunds are not automatic for businesses that were impacted in the last year. Instead, businesses and importers will need to submit a claim request through the portal for processing.
The refund system will initially focus on the first phase of payouts, which will be limited to “certain unliquidated entries and certain entries within 80 days of liquidation,” according to federal guidance. Once refund requests are approved, it could take 60 to 90 days to return the money to the importer.
Refunds will be issued electronically, which has been the CBP’s policy since early February.
Will consumers receive refunds?
One study published in January this year by the Kiel Institute, an independent economic research institute based in Germany, found that 96% of the tariff burden is passed through to U.S. buyers.
According to the Congressional Joint Economic Committee, American families have paid more than $1,700 in tariff costs each.
Consumers cannot apply for refunds. Some businesses, like shipping giant FedEx, say they will try to pass their refunds to customers who originally bore those charges. Other businesses, meanwhile, have said they will lower prices for consumers instead.
“As we've done in the past when legal challenges have recovered, charges passed on in some form to our members, our commitment will be to find the best way to return this value to our members through lower prices and better values,” Ron Vachris, CEO and President of Costco, said during a March earnings call.
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