President Trump touts tariffs as admin moves to lock in revenues
WASHINGTON — President Donald Trump pushed his case earlier this week for continued tariffs on imported goods, citing figures showing a sharp reduction in the U.S. trade deficit as evidence that his tariff strategy is working.
At the same time, his administration is taking steps that could make it harder for companies to reclaim billions of dollars in duties if the Supreme Court ultimately strikes the levies down.
In a post on Truth Social, President Trump said that recently released numbers show tariffs have “reduced the Trade Deficit of the United States by more than half,” calling the outcome “larger than anyone, except ME, projected.” He added that the gains “will only get stronger in the near future,” and urged the Supreme Court to uphold the administration’s authority to impose the duties. “Everybody should pray that the United States Supreme Court has the Wisdom and Genius to allow Tariffs to GUARD our National Security, and our Financial Freedom!” he wrote.
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It’s being reported by Politico and others that the Trump administration is racing to deposit tariff revenue into the U.S. Treasury, a move that trade lawyers and importers say could complicate or delay refunds if the high court rules that President Trump overstepped his authority under the International Emergency Economic Powers Act, or IEEPA. To that end, Customs and Border Protection has been denying or limiting requests from importers to delay the “liquidation” of tariff payments, the process by which collected duties are finalized and transferred to the Treasury
Once tariffs are liquidated into treasury coffers, importers lose the ability to seek routine corrections and must instead pursue a more formal protest or litigation to recover the money. Trade attorneys say CBP has historically shown flexibility in delaying liquidation during major legal disputes, but the scale of the current tariffs — and the amount of money involved — is unprecedented. “We’re in uncharted territory,” Brett Johnson, a partner at Snell & Wilmer, was quoted by Politico as stating during a recent webinar for importers.
The issue has already sparked a wave of lawsuits. More than 100 companies are weighing or have filed legal action to preserve refund rights, including Costco, which filed suit in late November. On Thursday, Costco was among dozens of other firms that asked the U.S. Court of International Trade to fast-track oral arguments on an injunction that would prevent CBP from liquidating tariffs they have paid.
The timing is critical. Monday marked the 314-day window for the first tariffs imposed under President Trump’s emergency authority — a 10% duty on Chinese imports tied to fentanyl trafficking concerns — after which liquidation typically occurs. As of Oct. 31, the federal government had collected more than $88 billion under the disputed tariffs, including $29 billion from China and Hong Kong, $5.72 billion from Mexico and nearly $52 billion from other countries.
Justice Department lawyers have argued that even if tariffs are liquidated, courts could still order refunds through “reliquidation” if the Supreme Court invalidates the duties. But importers and their attorneys warn that controlling the pace of liquidation effectively gives the administration leverage over how and when refunds might be issued.
The Supreme Court, which heard oral arguments in the IEEPA cases earlier this month, has until the end of its term this summer to rule. Until then, President Trump continues to frame tariffs as both an economic and national security success, even as businesses brace for prolonged legal and financial uncertainty.
