US launches $166B tariff refunds
- The US launched a system to refund $166 billion in tariffs after the Supreme Court struck down emergency duties. - The refund pool totals $166 billion, and businesses can now begin filing claims under the new process. - The move signals a rollback of Trump-era import duties as the administration implements the court decision (nytimes.com) (reuters.com).
U.S. Customs and Border Protection opened a new online system on April 20 for businesses to claim refunds on tariffs the Supreme Court ruled were collected illegally. (cbp.gov) (reuters.com) The agency says the first phase of the CAPE portal covers certain unliquidated entries and certain entries within 80 days of liquidation, and it is designed to process International Emergency Economic Powers Act duty refunds in batches rather than one shipment at a time. Reuters reported thousands of companies moved to file claims as soon as the system went live. (cbp.gov 1) (cbp.gov 2) (reuters.com) The refund pool is about $166 billion, though some estimates put the government’s exposure closer to $175 billion. As of April 9, more than 56,000 importers had registered for refunds, and Customs said about 82% of the duties, or roughly $127 billion, are eligible in CAPE’s initial rollout. (cbsnews.com) (cbp.gov) The money is tied to tariffs President Donald Trump imposed under the International Emergency Economic Powers Act, a 1977 law that lets presidents restrict economic transactions during national emergencies. On February 20, 2026, the Supreme Court ruled 6-3 that the law does not authorize presidents to impose tariffs. (ropesgray.com) That ruling knocked out the “Reciprocal Tariffs” first imposed in April 2025 on Trump’s “Liberation Day” and the separate trafficking and immigration tariffs tied to fentanyl. The decision left other tariffs imposed under different trade laws untouched. (ropesgray.com) The Court of International Trade then ordered Customs to build a refund process, turning a constitutional fight over presidential power into an administrative scramble over who gets paid, when, and through what paperwork. Customs says CAPE declarations are required for validated refunds issued under court order and other statutory authority. (cbp.gov 1) (cbp.gov 2) Businesses and customs brokers can file claims, but consumers cannot file directly because the duties were legally paid by importers at the border. Trade lawyers told CBS News the burden still falls on companies to identify eligible entries and submit the claims themselves. (cbsnews.com) Small-business advocates say the portal is a start, not a full fix. Richard Trent of Main Street Alliance said companies “should not have to jump through hoops” to recover money they never should have paid, while Customs says the phased system is meant to simplify and speed processing. (cbsnews.com) (cbp.gov) For now, the biggest shift is practical: a court ruling from February is finally turning into refund claims, and importers that paid the struck-down duties can begin trying to get that money back. (cbp.gov) (reuters.com)
