The U.S. government is rapidly disbursing billions of dollars in tariff refunds to companies, accelerating payments in the final days of June. This surge in reimbursements follows a Supreme Court decision earlier this year that found certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) to be unlawful.
Basic Fun, a toy company based in Boca Raton, Florida, received a $6.5 million refund from the Treasury Department on June 29. This payment represents approximately 95% of the tariffs the company paid on its imports. Jay Foreman, CEO of Basic Fun, expressed surprise at the timing, stating, “I never thought this day would come.” The company manufactures popular brands including Tonka Trucks, Care Bears, and Lite Brite.
The pace of these disbursements had reportedly slowed in the weeks leading up to this final push, causing concern among businesses. Sara Albrecht, CEO of the Liberty Justice Center, which represented five small businesses in the Supreme Court case, reported that dozens of companies had received their full refunds over the weekend and into Monday. "It has been weeks without refund news and today [the] floodgates are open," Albrecht told The Post.
The Supreme Court ruled on February 20 that the IEEPA did not grant the president the authority to impose these tariffs. This ruling potentially makes around 330,000 companies eligible for refunds on levies paid for over 53 million shipments, totaling an estimated $166 billion.
These payments are being made as U.S. Customs and Border Protection (CBP) had previously indicated plans to transfer $40 billion by the end of June. As of June 9, the CBP had disbursed $23 billion of the $166 billion owed. Albrecht noted that the government's announcement of an additional $17 billion in disbursements within three weeks of the ruling had elicited a strong reaction in the courtroom.
Basic Fun had previously received a $500,000 refund in April when a portal for claims was established, and it is still awaiting an additional $400,000. Experts suggest that companies that submitted claims promptly after the portal opened were among the first to receive reimbursements.
The arrival of these funds is particularly timely for the toy industry, which is currently placing orders for the upcoming holiday season. Many toy companies source their manufacturing overseas, primarily in China, where an estimated 80% of all toys are produced.
Foreman also commented on the broader implications of the legal victory, saying, “Sometimes the little guy, with the courage to stand up for what is right, can prevail against government overreach.” Basic Fun is also involved in a separate lawsuit filed by the Liberty Justice Center concerning global tariffs announced by the Trump administration after the Supreme Court's decision. These temporary tariffs are set to expire on July 24, and the Liberty Justice Center estimates companies will have paid between $35 billion and $50 billion by that date.