The U.S. Court of International Trade ruled on May 28, 2024, that former President Donald Trump’s sweeping leverage of emergency powers to impose tariffs on steel, aluminum, and numerous Chinese goods exceeded his authority under the Trade Expansion Act of 1962, rendering the duties unconstitutional.
businesses that paid these tariffs between 2018 and 2020 can now start filing for refunds starting Monday, June 3, 2024, through a newly launched portal managed by U.S. Customs and Border Protection (CBP). The ruling affects an estimated $38 billion in duties collected during that period, according to CBP data reviewed by the Congressional Research Service.
The decision stems from a consolidated lawsuit filed by trade associations and importers who argued that Trump bypassed Congress by invoking national security emergencies under Section 232 of the Trade Expansion Act to justify tariffs that were economically, not militarily, motivated. The court agreed, stating that the president’s actions “violated the separation of powers” by usurping Congress’s exclusive authority to regulate foreign commerce.
“This is a landmark ruling that reasserts congressional oversight over trade policy,” said Jennifer Hillman, a former World Trade Organization appellate body member and senior fellow at the German Marshall Fund. “It sets a precedent that emergency powers cannot be used as an end-run around legislative authority for prolonged economic measures.”
The refund process requires importers to submit detailed documentation through the ACE Secure Data Portal, including original entry summaries, proof of payment, and evidence linking the goods to the specific tariff lines challenged in the lawsuit. CBP has published step-by-step guidance on its website, noting that claims must be filed within two years of the ruling’s effective date.
Industry analysts caution that while the refund opportunity is significant, the administrative burden may deter smaller businesses. A survey by the National Customs Brokers and Forwarders Association of America found that only 40% of modest importers feel confident navigating the refund process without professional assistance.
Large retailers and manufacturers, however, are mobilizing teams to maximize recoveries. Walmart, which imported over $30 billion in goods from China annually during the tariff years, has established a dedicated task force to audit eligible entries. Similarly, Ford Motor Company anticipates recovering hundreds of millions in duties paid on steel and aluminum components used in vehicle production.
Economists note that while refunds will provide liquidity to businesses, they are unlikely to translate into lower consumer prices. A May 2024 survey by the CNBC CFO Council found that 78% of finance executives expect recovered funds to be reinvested in operations, debt reduction, or shareholder returns rather than passed on to customers.
The Biden administration has not appealed the ruling, focusing instead on implementing the refund system. Treasury Secretary Janet Yellen acknowledged the legal complexity during a press briefing on May 30, stating, “We are committed to ensuring compliance with the court’s decision while maintaining the integrity of our customs enforcement.”
Legal experts warn that future administrations may face renewed scrutiny over the use of Section 232. “This decision doesn’t eliminate the president’s authority to act in genuine emergencies,” said Douglas Irwin, trade economist at Dartmouth College. “But it does require a higher bar for what constitutes a national security threat in the context of trade policy.”
CBP officials confirm the refund portal went live at 8:00 a.m. EDT on June 3, with initial processing times estimated at 60 to 90 days for complete submissions. The agency has set up a dedicated help desk and hosted three public webinars in late May to assist filers.
As of June 5, over 12,000 refund claims had been initiated through the portal, representing approximately $1.2 billion in asserted duties, according to a CBP spokesperson who spoke on condition of anonymity. The agency emphasized that all claims are subject to post-payment audit to prevent fraudulent or duplicative filings.
The ruling does not affect tariffs imposed under other authorities, such as Section 301 of the Trade Act of 1974, which remain in place and are currently under review as part of the administration’s broader China trade strategy.
For businesses seeking to determine eligibility, CBP provides a searchable database of affected Harmonized Tariff Schedule (HTS) codes linked to the Section 232 measures. Importers are advised to consult with licensed customs brokers or trade attorneys to ensure accurate documentation.
The next key deadline is June 3, 2026 — the two-year statute of limitations for filing refund claims related to this ruling. After that date, no further claims will be accepted for the specified tariff periods.
We invite readers to share their experiences with the tariff refund process in the comments below. Have you begun preparing a claim? What challenges have you encountered? Your insights help inform others navigating this complex but potentially valuable opportunity.
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