Automotivelogistics: US prepares to process refunds for Trump tariffs
Donald Trump speaking following the Supreme Court ruling on the illegality of his IEEPA tariffsSource: The White House
A filing to the Court of International Trade made by Brandon Lord, executive director of the Trade Programs Directorate at the CBP on 6 March addressed the process planning for refunding a reported $166 billion in tariffs collected under the International Emergency Economic Powers Act (IEEPA). Lord said the system will require “minimal submission from importers” ad be ready in 45 days. He added that as of 4 March, more than 330,000 importers made a total of more than 53m entries with the customs agency.
He said the system will “also minimise errors by ensuring accurate IEEPA refund calculations through system validations and allowing for a review period for CBP to resolve any discrepancies with the importer and to confirm no other outstanding enforcement issues or no revenue is owed”.
The US tariff timeline of trade tensions and tariff changes
While it may be a relief to automotive supply chain firms who have been subject to the tariffs, it is likely to be a more complicated process than Lord suggested, as section 232 tariffs including tariffs on imports of car parts and finished vehicles still stand. The tariff refunds will have to be calculated based on whether or not parts are included in IEEPA or section 232, and will no doubt add uncertainty to an already confusing situation.
On top of this wrinkle, the CBP only issues refunds electronically through its computer system ACE, but most importers have not completed signing up for the electronic system, with just more than 21,000 out of more than 330,500 importers having signed up. Lord said that until importers complete the process to receive refunds electronically, they will be rejected.
Automotive logistics and supply chain firms that have filed lawsuits
While the new system in theory means that companies will not have to sue the US government to receive refunds on IEEPA tariffs paid, some firms have already filed lawsuits.
Chinese carmaker BYD filed a lawsuit against the US government on 26 January this year, challenging Donald Trump’s authority to impose tariffs under IEEPA and requesting a refund for all tariffs paid since April 2025.
Similarly, Goodyear Tires filed a suit at the US Court of International Trade in December last year, while Yokohama Tire and Toyota subsidiaries filed separate suits challenging the IEEPA tariffs and their legality in November 2025.
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