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Tariff refund delays could cost U.S. taxpayers $700 million a month in interest, Cato Institute finds
Delays in refunding $134–$175 billion in unlawful tariffs are costing U.S. taxpayers about $700 million monthly in interest, according to a Cato Institute analysis.
- Cato Institute analysts say roughly $175 billion sits in the U.S. Treasury and accrues interest costing taxpayers $700 million per month after the Supreme Court struck down tariffs last month.
- Under court rules, transmission to the Federal Circuit takes 32 days and the Trump administration requested a 90-day pause on refunds, but the CAFC rejected that pause, delaying remands to the U.S. Court of International Trade.
- Through just a 120-plus-day delay, taxpayers face about $3 billion in interest, with Cato's figures implying roughly $23 million accrues daily using IRS-style rules at 4.5%.
- Thousands of companies have sued, with over 2,000 cases pending at the U.S. Court of International Trade, while FedEx pledges refunds if courts rule in its favor.
- Refunds are expected to take 12 to 18 months to reach importers, with Warren demanding a plan by March 6 and experts urging automating transfers as interest could total about $8 billion next year.
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One report warned that the delay in returning tariffs cancelled by the Supreme Court could cost the U.S. $23 million a day in interest
Report: Tariff Refund Delays Costing $700M in Monthly Interest
·Washington, United States
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Coverage Details
Total News Sources13
Leaning Left3Leaning Right2Center4Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 33%
C 45%
R 22%
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