$166B Tariff Refunds

U.S. importers can start filing for refunds on April 20 for tariffs the Supreme Court threw out in February, with potential claims reaching $166 billion. (cbp.gov, usnews.com) The court ruled 6-3 on February 20, 2026, that President Donald Trump could not use the International Emergency Economic Powers Act, a 1977 emergency law, to impose those tariffs. The decision invalidated the “reciprocal” tariffs announced in April 2025 and separate tariffs tied to fentanyl trafficking and immigration. (scotusblog.com, ropesgray.com) The refund system is run by U.S. Customs and Border Protection through a new process called Consolidated Administration and Processing of Entries, or CAPE, inside the Automated Commercial Environment portal. Customs said Phase 1 opens April 20 and covers certain unliquidated entries and some entries still within 80 days of liquidation. (cbp.gov, nortonrosefulbright.com) Tariffs are taxes paid at the border by the importer of record, not by the foreign exporter. That matters now because the legal right to seek a refund usually starts with the importer listed on the customs entry, even if the economic cost was later passed to wholesalers, retailers, or consumers. (thomsonreuters.com, msn.com) Customs is not paying everyone automatically. Importers and customs brokers must submit a CAPE declaration file through the portal, and refunds are expected to be bundled into one electronic payment with interest when applicable instead of being processed entry by entry. (cbp.gov, usnews.com) The first phase does not cover every disputed tariff payment. Customs said CAPE is being rolled out in stages, with later phases reserved for more complicated claims, which means some companies that say they were harmed will still be waiting after April 20. (cbp.gov, nixonpeabody.com) Lawyers and trade advisers say the paperwork will be messy because companies need to match customs entries, liquidation dates, banking setup, and internal records before filing. Reuters reported that businesses are already preparing claims but expect delays and fights over eligibility. (usnews.com, ey.com) Some advisers are also warning companies not to assume the money will arrive quickly. One trade analysis cited by practitioners said only a small share of eligible importers had completed the Automated Clearing House enrollment needed for electronic payments as of early April. (wiss.com, nortonrosefulbright.com) The refund fight is also bigger than one claims portal. The Supreme Court ruling cut back a president’s ability to use emergency powers to rewrite trade policy on his own, while the administration has looked to other tariff authorities that were not struck down in the case. (scotusblog.com, thomsonreuters.com) So April 20 is the start of a federal repayment process, not the end of the tariff fallout. For importers, the next step is simple on paper and complicated in practice: prove the entries, meet the deadlines, and get in line. (cbp.gov, time.com)