The government collected the money, the courts said the law did not allow it, and now about $100 billion is heading back to the people who paid it.
The administration built the tariffs on IEEPA, a law that gives presidents emergency powers to act on trade without Congress.
In late February, the Supreme Court threw the tariffs out, ruling that IEEPA gave no authority for them. About two weeks later, Judge Richard Eaton said the money had to go back to importers.
So the refunds are not a favor. They are the result of a court order, and they are still coming.
In late April, U.S. Customs and Border Protection created a system called CAPE to handle the job. By July 31, CAPE had logged 252,496 refund claims tied to more than 25 million import entries, according to Brandon Lord, a CBP official who gave a court-ordered update Tuesday.
CAPE has accepted close to $129 billion in refund amounts, counting both refunds that are final and ones still being reviewed. About $100 billion of that has finished processing and gone to the Treasury for payment.
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The gap between those two numbers is the money that has been accepted but has not yet finished processing, and therefore has not gone to the Treasury for payment. The rest of the money is still working its way through, and with millions of entries to check, it will take a while.
Trump did not take the Supreme Court's ruling quietly. He has made tariffs a major tool of his economic and foreign policy, and he has been openly angry at the courts.
His administration is already rebuilding the tariff system on other legal powers, and those replacement tariffs are being challenged in court. That means even as refunds flow out, new tariff bills could be flowing in.
There is also a fight over who gets refunded. Freestyle World, the California importer that brought the case, wants the lawsuit to cover smaller businesses that say the CAPE refund process created obstacles for them.
The administration says the request to make it a class action, which would cover many businesses at once, was filed too late and is invalid.
Trump is not backing away. During a Fox News interview on Tuesday, he praised tariffs as "incredible" and said, "we've taken in hundreds of billions of dollars." He added: "Supreme Court gave us a little shot, but we're allowed to do it in a different manner."
For importers still waiting on money, that comment is a reminder that the same fight is already starting over.
For investors, the biggest takeaway is how fast trade policy can change. A single court ruling undid a tariff system that collected $166 billion, and the money is now flowing back out.
Importers pay tariff costs first, but those costs rarely stay there. Companies either absorb them or pass them along to customers, which is how a court case about trade law can end up affecting prices and profit margins.
The refunds put cash back in importers' hands, and that cash can go toward inventory, wages, or better prices. But the replacement tariffs could just as easily pull that money back out.
With replacement tariffs already facing lawsuits, the next chapter of the fight is already underway. When trade policy moves this fast, the winners and losers can change just as quickly, and so can the stocks tied to them.
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