US customs officials are refusing to refund billions in tariffs ruled illegal, leaving businesses in limbo and forcing more legal disputes.

WASHINGTON: US customs officials are refusing to refund billions of dollars in tariffs ruled illegal by the Supreme Court last month.

The Financial Times reported that US Customs and Border Protection is denying companies’ requests to recover duties imposed under emergency powers invoked by former President Donald Trump.

This leaves businesses uncertain and is driving more disputes into court. The US government collected more than USD 130 billion in tariff payments central to Trump’s trade policy, which the court found illegal.

READ MORE: Judge to hold private talks on massive Trump tariff refunds

The Supreme Court did not provide guidance for issuing refunds, creating confusion over reimbursement for importers. Many companies have rushed to submit corrections to remove specific tariff codes from shipment entries.

However, CBP has been rejecting those submissions and suspending related protests. This follows a US trade court judge ordering the government on Wednesday to begin paying potentially billions in refunds.

The White House and CBP did not immediately respond to requests for comment. Reuters could not immediately verify the FT report.

 The Sun Malaysia