US President Donald Trump's administration has paid back $100bn (£78bn) in "Liberation Day" tariff refunds to businesses through customs officials.

This represents roughly 60% of all tariff revenue collected by the government under the policy, according to a recent court filing from US Customs and Border Protection.

However, a significant chunk of money remains unpaid. Nearly $29bn in potential refunds is undergoing review by trade authorities, while another $1.6bn is stuck because importers have not yet supplied their banking details.

The repayments follow a major Supreme Court decision in February, in which judges ruled that broad import tariffs introduced under economic powers were unlawful.

The White House had cited a 1977 law, the International Emergency Economic Powers Act (IEEPA), which gives the president power to "regulate" trade in response to an emergency.

But the measures sparked outcry at home and abroad from firms facing an abrupt rise in taxes on shipments entering the US, and worries that the levies would lead to higher prices.

Tariffs are taxes on foreign goods entering a country. They are not paid by foreign governments or overseas exporters, but by domestic businesses and importers when goods arrive at customs.

Higher tariffs raise upfront business expenses, and companies usually pass these extra costs to shoppers through higher retail prices.

Since the Supreme Court decision, several major American corporations have already claimed large sums back.

Amazon received about $600m in refunds during the second quarter, according to finance chief Brian Olsavsky.

Olsavsky said on the company's second quarter earnings call that Amazon would pass some money back to customers where specific charges were applied, and the remaining funds would be used to support lower store prices.

Under US customs law, only importers who directly paid tariffs can claim refunds, leaving any consumer relief entirely up to individual businesses.

The overall tariffs payout is expected to rise further as US Customs continues to review pending claims and importers update their banking details.

After the February court ruling, Trump introduced a 10% universal tariff as a temporary solution.

These expired late last month, and were replaced by new tariffs on 60 trading partners based on claims key economic partners have failed to properly tackle forced labour.

That move came a few days after Trump slapped a 50% tariff on Canada.

Source: BBC
– Agencies