NYS businesses, including on Long Island, could recover billions in tariff refunds

Amityville-based furniture wholesaler Ming Chiang estimates he has paid upward of $1 million in tariffs.

The tariffs imposed by the Trump administration have had a "tremendous impact" on his business, which has struggled to pass costs onto consumers, said Chiang, who is president of Yu Shan Company, also known as Casual Home Worldwide. Because the company is a wholesaler, it's "difficult to negotiate price increases," he said.

On Monday, the Trump administration took its first steps toward issuing tariff refunds with the launch of a web platform through U.S. Customs and Border Protection. Chiang said his company has a team already working on an application for reimbursement, but he said the business is still paying 10% in tariffs, although that's less than it was paying before — 19% to 24%, depending on country of origin.

The duties paid by Chiang's business is among an estimated $13.5 billion paid by New Yorkers toward import taxes, according to state estimates. That tally is even greater on a national scale, with American businesses paying around $166 billion in tariffs that were deemed unconstitutional by the U.S. Supreme Court in a 6-3 decision on Feb. 20.

Importers and brokers may file multiple declarations listing imports taxed under the International Emergency Economic Powers Act, or IEEPA, through accounts on the web-based platform. The system called CAPE — an acronym for Consolidated Administration and Processing of Entries — will facilitate refunds within 60 to 90 days after a claim is approved, according to U.S. Customs and Border Protection, which is running the site.

The system follows a Supreme Court ruling that found the president had exceeded his authority last April when he cited the U.S. trade deficit as a national emergency to invoke the IEEPA, a 1977 emergency powers law. The decision did not order the government to repay the tariffs, but a judge at the U.S. Court of International Trade determined last month that businesses subjected to IEEPA taxes should see refunds.

Customs and Border Protection has noted that the refund process is being rolled out in phases.

"Importers and brokers can visit CBP’s website for resources and step-by-step guidance," an agency spokesperson said in an email to Newsday.

Stacey Sikes, acting president and CEO of the Long Island Association, a regional business nonprofit, called the refund portal's launch "welcome news" that could help businesses experiencing tariff-induced financial challenges to recoup money, "especially at a time when they are navigating other uncertainties."

"Hopefully the processing of refunds will be expeditious," she said.

Mike Donovan, owner of Bayshore vacuum cleaner store Turnpike Appliance, said he's seen price increases over the past few years due to several reasons, including tariffs.

"It’s good to know a tool like this exists that maybe I can recoup some funds from prior import price increases. Vaccuums aren’t cheap but I want to keep quality products as affordable as possible for my customers," he said. 

At a media event on Monday, Gov. Kathy Hochul also highlighted the refunds, as well as the added burdens that tariffs pose as many in the state struggle with continued inflation.

"Remember, everyday New Yorkers also paid the price," she said. "$13.5 billion is the additional cost that has been imposed on New Yorkers alone because of the Trump tariffs, and that's about $1,700 per the average family."

New York Attorney General Letitia James, along with 21 other state attorneys general and the governors of Kentucky and Pennsylvania, sued in March to stop tariffs implemented under the Trade Act of 1974, which the administration used to impose a 10% import tax on imports for 150 days starting Feb. 24. The suit also seeks refunds for tariffs collected under the law.

The White House did not immediately respond to a request for comment.

With AP

By Brianne Ledda

brianne.ledda@newsday.com@brianne_ledda

Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.