Illegal Trump tariffs leave $175 billion accruing interest and may cost taxpayers $700 million a month
Mar 4th 2026
A Cato Institute report says $175 billion collected under Trump’s IEEPA tariffs is sitting in the Treasury and accruing daily interest, and delays in issuing refunds could cost U.S. taxpayers about $700 million per month while CBP and courts sort out the process.
- Supreme Court struck down the bulk of President Trump’s IEEPA tariffs but did not resolve how refunds should be issued.
- About $175 billion collected from those tariffs is held in the Treasury and accrues interest under CBP rules.
- CBP rules compound interest daily at about 4.5% for overpayments above $10,000 and 6% for smaller amounts.
- The Cato Institute estimates refund delays could add roughly $700 million in interest per month, or about $23 million per day.
- Refunds will be decided by U.S. Customs and Border Protection and lower courts and could take 12 to 18 months or longer to reach importers.
- Studies show importers passed roughly 90% of the tariffs to U.S. consumers, meaning households bore most of the cost and may not be fully compensated even if refunds happen.
- If refunds are delayed a year, interest on the tariff revenue could reach about $8 billion and could exceed $25 billion by the end of the presidential term.