Trump tariffs refunds: Who will get refund and what will be the process - all you need to know
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US President Donald Trump delivers remarks on reciprocal tariffs as US Secretary of Commerce Howard Lutnick holds a chart during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on April 2, 2025. Photograph: (AFP)
US businesses can now apply for $127 billion in tariff refunds following a Supreme Court ruling that deemed the prior emergency trade duties unconstitutional. Claims are processed via Customs' CAPE.
Businesses across the US can begin applying for tariff refunds from Monday (April 20), marking the first step in what could become the largest repayment of its kind in the country’s history, following a landmark ruling by the US Supreme Court.
Importers who paid tariffs later deemed unconstitutional will be able to submit claims through a new online system operated by US Customs and Border Protection from 8 am. The move initiates the process of returning billions of dollars collected under the now-invalid policy.
Companies and their customs brokers must file declarations identifying the goods on which import taxes have been paid. According to the Associated Press, approved claims are expected to be refunded within 60 to 90 days, although delays are possible due to technical and procedural challenges. The government plans to issue repayments in phases, prioritising more recent tariff payments.
Court rulings set process in motion
The refund process follows a 6–3 ruling by the US Supreme Court on 20 February, which found that President Donald Trump exceeded his constitutional authority by imposing sweeping tariffs last April under a 1977 emergency powers law. The court said the move encroached on Congress’s power to levy taxes.
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While the top court did not specify how refunds should be handled, the US Court of International Trade ruled last month that companies affected by tariffs imposed under the International Emergency Economic Powers Act are entitled to reimbursement.
Billions at stake
The scale of repayments could be unprecedented. Axios reported that the refund portal marks the first phase of compliance with court orders to repay billions of dollars in tariffs and interest. Court filings cited by both Axios and the Associated Press show that more than 330,000 importers paid an estimated 166 billion dollars in tariffs across over 53 million shipments. However, not all payments will qualify immediately.
The first phase applies to entries where tariffs were estimated but not finalised, or those within 80 days of final accounting. As of mid-April, 56,497 importers had registered for the electronic payment system, making them eligible to receive approximately $127 billion, including interest.
How the system will work
Refund claims will be processed through the Consolidated Administration and Processing of Entries system, known as CAPE, available via the Automated Commercial Environment portal managed by US Customs and Border Protection.
Importers of record and authorised brokers must create accounts and submit banking details. The agency said it has issued guidance to help businesses prepare documentation and use the system.
A spokesperson for Customs said, in comments cited by Axios, that resources and step-by-step instructions are available on its website to support the trade community.
Will consumers benefit?
According to the Associated Press, tariffs are paid by importers, though many businesses passed on the costs through higher prices. Companies receiving refunds are not currently required to reimburse customers, but legal challenges are ongoing. Axios reported that several lawsuits have been filed seeking repayment of tariff-related costs, including a case involving Costco. The trade court is expected to consolidate these cases.
Some consumers may still benefit indirectly. FedEx reported that it intends to pass on reimbursements to customers once it receives funds from Customs, stating that supporting customers through regulatory changes remains a priority.
