Businesses claw back tariff refunds after Trump tariffs ruled unlawful
Businesses around the world are receiving refunds of tariffs paid to the United States after Donald Trump's so-called liberation day tariffs were ruled unlawful. The refunds are being issued after the April 2025 measures triggered a sharp rise in import costs for companies selling into the US market. One Australian brand, Nashie, says it has already received a six-figure refund that included interest.
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Oxford Economics estimates that about US$80 billion in tariffs has been refunded since May, with interest paid at rates of up to 7%. The firm says the same amount is expected to be refunded again over the next year to businesses globally. Grace Zwemmer of Oxford Economics described the scale of the repayments as the largest refund issuance ever paid by the Department of Homeland Security.
The tariffs were introduced in April 2025 and quickly affected importers and exporters across multiple countries. Australian exporters were hit with a flat 10% charge on goods entering the US, while some firms faced higher effective rates because their products were made in China. Nashie, which makes swim garments in China and had only just set up a local distribution hub for the US, said it had cargo already on the water when the tariffs were imposed and had to find extra cash to clear its goods.
For businesses, the refunds are significant not only because of the sums involved but because they reverse a policy shock that disrupted trade flows and cash planning. Companies that paid the tariffs have had money tied up for months, and the addition of interest has increased the value of the repayments. The development also highlights the legal and financial risks that can follow abrupt trade measures when they are challenged in court.
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The case has broader implications for global trade because the tariffs were applied widely and affected firms far beyond the United States. The refunds are being watched closely by importers, customs brokers and trade lawyers, who are likely to see further claims as more companies seek repayment. The issue also matters for governments and regulators because it shows how quickly trade policy can create large-scale administrative and financial consequences.
The legal challenge was brought by the Liberty Justice Centre, a US not-for-profit law firm that opposed the April 2025 tariffs. Its chief executive, Sara Albrecht, said the organisation did not take on the case lightly, describing it as unusual for a conservative-leaning firm to challenge a conservative president. The case drew in plaintiffs who were directly affected by the tariffs and who faced uncertainty over whether they would ever recover the money they had paid.
Nashie's co-founder, Tom Wilson, said the refund came as a surprise and described the stress caused by the tariffs when the company was trying to sell into the US. The brand's experience illustrates how the policy affected smaller exporters as well as larger importers, especially those with goods already in transit when the measures took effect. The refunds also show that the impact of the tariffs is continuing long after the original announcement.
What remains unclear is how quickly the remaining refunds will be processed and which businesses will receive them next. It is also not yet clear how many firms are still waiting for repayment or whether further legal and administrative steps could affect the timetable. For now, the main question is how far the refund process will extend over the coming year and how much of the tariff burden will ultimately be returned.
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