The Supreme Court struck down 70% of the additional tariffs imposed by the Trump administration on February 20.
In response, the U.S. administration invoked Section 122 of the Trade Act of 1974 to impose a 15% tariff on nearly all countries. This exceptional measure is set to last 150 days. Additional sectoral tariffs under Section 232 have also been enacted, including a 50% tariff on steel.
Overall, according to UniCredit economists, the average tariff rate in the United States stands at 13.7%, down from 16% prior to the Supreme Court’s decision, but still at its highest level since 1941.
The U.S. government will launch an online portal on April 20 to allow American importers to request refunds of $166 billion deemed improperly collected according to the Supreme Court.
As of April 9, more than 56,000 importers had already submitted refund claims related to the Court’s decision, totaling $127 billion.
However, more claims are expected. According to court documents, over 330,000 importers paid the disputed tariffs on 53 million import shipments. Based on an estimate of 5 minutes of manual verification per shipment (Brandon Lord’s estimate), the process would require 4,431,161 hours of work — equivalent to 506 employees working full-time for one year.
But time is pressing, and an automated system will be implemented. Indeed, the interest accruing on the collected amounts is estimated at $650 million per month.
Without timely procering, the total cost could reach $10 billion by the end of the year.
Sources :
– LaTribune : 127 of the 166 billion repaid
– Customs duties – 10 billion interest payments
– Zonebourse | Reimbursement of customs duty
– UniCredit | Immediate effect
