Companies chase $10bn tariff refunds

Why it matters

The fight over Trump-era tariffs has moved into a new phase: refunds. After the Supreme Court ruled on February 20 that the International Emergency Economic Powers Act did not authorize those tariffs, importers began filing claims to recover money already paid, while related cases continued in the U.S. (skadden.com) Court of International Trade. The sums are large. U.S. Customs and Border Protection has said CAPE — its new Consolidated Administration and Processing of Entries system — is meant to handle refunds tied to duties that could total roughly $165 billion to $166 billion across more than 53 million entries. (bloomberg.com) (cbp.gov) The immediate dispute is not only over who gets paid, but how fast and how accurately the government can process claims. A May 26 court filing said about $20.6 billion was on its way to importers that had successfully filed through CAPE, after CBP corrected an earlier figure that had been overstated by about $10 billion. (skadden.com) ### Where did these refund claims come from? The Supreme Court’s February 20 ruling in *Learning Resources, Inc. v. Trump* held that IEEPA does not confer tariff authority, according to Skadden’s summary of the decision and the resulting refund process. That left the government to work out how to return already-collected duties. (cbp.gov) The Court of International Trade then ordered CBP to refund unlawfully collected IEEPA duties in litigation that included *Atmus Filtration, Inc. v. United States*, according to Skadden. CBS News reported that companies also filed thousands of cases in the trade court seeking refunds after the ruling. (bloomberg.com) ### What is CAPE, and who can use it? CBP launched the first phase of CAPE on April 20, 2026, the agency says on its website. The portal lets importers of record and authorized customs brokers submit claims electronically through the ACE portal. Phase 1 is narrow. CBP says it is limited to certain unliquidated entries and certain entries within 80 days of liquidation, and each declaration can cover up to 9,999 entries. (skadden.com) CBS reported that payouts are not automatic and that the burden remains on importers to register, upload declarations and provide bank details. ### Why is the $10 billion error getting attention? A May 12 court filing had put the amount of refunds being processed at more than $35.5 billion, according to Bloomberg and CNBC. (skadden.com) By May 26, CBP told the court that about $20.6 billion was being sent to importers and that the earlier figure had been overstated by about $10 billion. (cbp.gov) Brandon Lord, executive director of trade programs for CBP’s Office of Trade, said in the later filing that about $85 billion in potential and certified refunds had been accepted for processing in CAPE as of May 22, according to reports carrying the filing details. (cbp.gov) ### Which companies are already seeing money? Oshkosh Corp. said it had started receiving payments on its claims, though it had not yet verified the total amount, CNBC reported on May 12. Basic Fun, the toy company behind Care Bears and Tonka trucks, also said it had begun receiving refunds, with Chief Executive Jay Foreman saying the first payments represented about 5% of its total claim on early invoices. (bloomberg.com) UPS, FedEx and DHL have said they would file for tariff refunds on behalf of customers, CNBC reported. That means some importers may see the process handled through logistics providers rather than directly. ### Why does this matter beyond trade lawyers? More than 330,000 importers paid the tariffs at issue across over 53 million entries, according to court-document summaries cited by Skadden and other reports. (moneycontrol.com) That scale is why the refund process has become an operational issue for companies, customs brokers and investors tracking cash flow. Trump said on a May 12 WABC radio interview that the refund situation was “crazy” and that “we’ll fight that,” according to CNBC. (cnbc.com) The next steps now sit with CBP’s phased CAPE rollout and with the Court of International Trade, where refund-related litigation is still shaping who gets paid and when. (skadden.com)

Key numbers

• importers and their lawyers are pressing tariff-refund claims after the Supreme Court’s February 20, 2026 ruling voided key Trump tariffs.
• (skadden.com) A May 26 court filing said $20.6 billion was being sent through CBP’s CAPE portal after officials corrected an earlier figure overstated by about $10 billion.
• After the Supreme Court ruled on February 20 that the International Emergency Economic Powers Act did not authorize those tariffs, importers began filing claims to recover money already paid, while related cases continued in the U.S.
• Customs and Border Protection has said CAPE — its new Consolidated Administration and Processing of Entries system — is meant to handle refunds tied to duties that could total roughly $165 billion to $166 billion across more than 53 million entries.

What happens next

• Customs and Border Protection has said CAPE — its new Consolidated Administration and Processing of Entries system — is meant to handle refunds tied to duties that could total roughly $165 billion to $166 billion across more than 53 million entries.
• A May 26 court filing said about $20.6 billion was on its way to importers that had successfully filed through CAPE, after CBP corrected an earlier figure that had been overstated by about $10 billion.
• A May 12 court filing had put the amount of refunds being processed at more than $35.5 billion, according to Bloomberg and CNBC.

Sources

• skadden.com
• bloomberg.com
• cbp.gov
• bloomberg.com
• moneycontrol.com
• cnbc.com

Quick answers