- Trump implies firms would benefit by abstaining from refunds
- Apple, Amazon, Target, Walmart have not sued over tariffs
- Customs agency has begun taking electronic refund requests
- Up to $166 billion in collected tariffs subject to refunds
WASHINGTON, April 21 (Reuters) - Donald Trump said on Tuesday he will "remember" companies that do not seek refunds for payments they made on his tariffs that were deemed illegal by the Supreme Court, although he did not specify how companies might benefit by abstaining from the U.S. government's new refund portal.
A day after the U.S. Customs and Border Protection agency began accepting electronic refund applications from importers, Trump told CNBC he was pleased to hear about media reports that Apple, Amazon and some other large companies have not yet sought refunds.
"It's brilliant if they don't do that," Trump said in a phone conversation with CNBC anchors that was aired live. "If they don't do that, I'll remember them. I will tell you that, because I'm looking to make this country strong," the Republican president said.
At issue is about $166 billion collected by the government from U.S. importers in tariffs that Trump had imposed last year under a 1977 law called the International Emergency Economic Powers Act intended for use during times of national emergency. The Supreme Court struck down those tariffs in February, finding Trump had exceeded his authority.
Trump, who has characterized the payment of tariffs by U.S. importers as patriotic, on Tuesday appeared to characterize American companies that are pursuing refunds as the "enemy."
"In many cases, the enemy - the enemy - is getting this money," Trump said, apparently referring to those companies.
"The people that have hated the United States, we're giving them checks for billions of dollars. It's so sad to see," Trump added, without naming specific companies or countries of origin for the imported products.
Trump said the Supreme Court "could have helped us" by upholding his sweeping global tariffs.
Apple, Amazon, Target and Walmart have not joined other big companies such as Costco, FedEx and Mondelez in suing the U.S. government to preserve their ability to secure refunds. They could still submit requests through the CBP portal, called CAPE.
Some experts view the low-profile approach by some companies as an attempt to avoid Trump's ire.
Representatives for Apple, Amazon, Target and Walmart did not immediately respond to requests for comment.
Apple has disclosed that tariffs raised its costs last year by some $3.3 billion. Major retailers have been less specific about the tariff hits to their bottom lines.
Last May, Trump told Walmart to "eat the tariffs" instead of raising prices and his administration accused Amazon of committing a "hostile and political act" over reports that it had considered breaking out tariff surcharges in pricing for its low-cost Haul division.
REFUND REQUESTS ROLL IN
In the aftermath of the Supreme Court's ruling on the tariffs, Judge Richard Eaton of the New York-based U.S. Court of International Trade ordered the government to issue refunds for the duties paid by importers. To comply, CBP created the CAPE automated system to receive and process the refunds. It was launched on Monday, mostly without serious glitches.
But on Tuesday, Eaton issued a temporary stay, opens new tab of his order, ordering CBP to submit a progress report on the first phase of its refund processing system by April 28.
The judge issued the stay after customs surety bond providers, opens new tab filed a legal brief that requested the ability to apply for the refunds of importers that defaulted on bonds or went out of business. Customs bonds are required for imports into the U.S. valued at more than $2,500 to ensure tariffs will be paid. The refund system was not designed to include surety providers.
The portal was continuing to accept refund submissions on Tuesday despite the judge's stay, according to Lynlee Brown, global trade partner at accounting firm EY.
Refund payments are not expected to be issued until 60 to 90 days after CBP acceptance of refund submissions.
CBP did not immediately respond to a request for comment on the status of the refund processing.
Eaton also has given the Trump administration a June 7 deadline to appeal his ruling requiring refunds. An appeal could interrupt processing of payments.
Adam Hanover, managing director and tariff-refund point person at tax and accounting advisory firm CohnReznick, said he was stunned that Trump has not put the "kibosh" on the refund process, despite the judge's stay.
"I was anticipating he would say, 'This is not a good time, with the war or whatever, so we're just not processing tariffs,'" Hanover said.
Hanover said that he expects Apple and other big importers to ultimately seek refunds, adding: "We're talking about a lot of money."
'UNWIELDY' TARIFFS
Trump told CNBC that the alternative tariffs that his administration is working to impose, under Section 301 of the Trade Act of 1974, may produce even more revenue than the invalidated tariffs, but would be more complicated. The Section 301 unfair trade practices tariff process requires investigations and public comments. Those tariffs are not expected to be imposed until July.
"So we're doing it a different way. We're going to end up with the same - actually, we'll end up with bigger numbers, actually - but it's a little more unwieldy. But it's the way it's been done," Trump said.
