UK businesses face long wait for tariff refunds after US court ruling

While the decision offers relief to companies that paid the tariffs, significant uncertainty remains around the timing and practicalities of refunds.

For many exporters and importers, the outcome highlights the complex financial and operational risks that arise when trade policy changes rapidly.

The court ruling and the scale of the challenge

The decision by the United States Court of International Trade means that tariffs collected in 2025 must be repaid. These duties, which affected a wide range of goods entering the United States, generated roughly $130bn before they were ruled unlawful.

Robert Salter, Director, explained:

UK businesses that faced significant customs duties on their imports to the USA will welcome the news that America’s Court of International Trade has ruled that they must be refunded. However, there is no definitive timeline as to when the refunds have to be made.

While the ruling confirms that repayments are due, it does not specify how quickly they must be processed. This leaves businesses uncertain about when or even how smoothly funds will be returned.

Why refunds may take months

Customs and Border Protection (CBP) will likely struggle to cope with the scale of the refunds that now need to be paid, meaning it could be many months before importers are refunded. The tariffs imposed in 2025 collected around $130bn before they were ruled illegal by the Supreme Court. This refund money must be traced and allocated to businesses worldwide and is further complicated by the frequent changes in tariff rates that occurred.

The administrative challenge lies not only in the volume of refunds, but also in determining exactly who is entitled to receive them. Tariff rates changed several times while the measures were in place, meaning individual transactions may need careful verification before repayment can be authorised.

For multinational supply chains involving multiple jurisdictions, documentation requirements could further slow progress.

Legal and political uncertainty remains

It is quite possible that the US Government will try and appeal the Court of International Trade’s repayment instructions and that could further delay the whole refund process. It is even possible that the US Government will attempt to refuse to pay the tariffs regardless of legal obligations to do so.

If appeals or procedural challenges emerge, companies could face extended uncertainty – potentially affecting cash flow planning and financial reporting.

Why many UK exporters may not receive refunds

It should also be noted that not all businesses exporting products to the USA during the period that the tariffs applied will actually be eligible for tariff refunds. Many firms that exported to American clients during the period in question would have sold their products on an ‘ex-works’ or ‘cost & freight’ basis. The obligation to pay the tariffs where the goods were sold under these terms would have actually sat with the US importer rather than the British businesses.

As a result, even businesses that saw their sales fall during the tariff period may not benefit financially from the refunds.

Robert concluded:

This means there will be no refunds for the British businesses in these cases, even though they might have suffered from reduced sales to the US during this whole period because of the now illegal tariffs.

What it means for businesses

Even when tariffs are later overturned, the process of unwinding them can be slow, complex and legally contested. Businesses may therefore experience prolonged periods of uncertainty, both operationally and financially.

For companies trading with the United States, the situation reinforces the importance of understanding contractual trade terms, monitoring policy changes closely, and maintaining clear records of customs payments.

What you should consider or do next

Businesses affected by the tariffs should consider several practical steps:

Review your contractual terms

Check whether your export contracts placed tariff liability on your business or the US importer. This will determine whether you are entitled to any refund.

Gather supporting documentation

Ensure customs declarations, invoices, and shipping documents from the affected period are readily available, as these may be required to support claims.

Monitor legal developments

Further appeals or government action could alter the timeline for repayments, so businesses should track developments closely.

Assess cash flow implications

If refunds are expected, factor potential delays into financial planning, as payments could take months to materialise.

Reassess supply chain risk

Businesses may wish to review sourcing, pricing structures, and contract terms to mitigate similar risks in the future.

While the court ruling offers a potential financial reprieve, the path to repayment could be slow – and for many businesses, the benefits may ultimately prove limited.

Would you like to know more?

If you would like to discuss any of the above, please speak to your usual Blick Rothenberg contact or Robert Salter using the form below.