The Trump administration begins accepting applications Monday for the return of more than $166 billion in tariffs that the Supreme Court ruled illegal earlier this year.
Importers and their customs brokers were able to start filing claims as of 8 a.m. through a new online portal run by U.S. Customs and Border Protection. The agency will issue refunds in phases, starting with more recent and straightforward entries, and expects to complete approved payments within 60 to 90 days, The New York Times reported.
The tariffs in question were imposed last April under the International Emergency Economic Powers Act. President Donald Trump cited the U.S. trade deficit as a national emergency to justify broad import taxes on goods from nearly every other country. The duties disrupted supply chains and raised costs for thousands of businesses that either absorbed the expenses, passed them to customers, or delayed shipments. Many companies shifted sourcing strategies to avoid the levies during the year they remained in effect.
The Supreme Court struck down the tariffs in a 6-3 decision on Feb. 20. The majority held that the president had usurped Congress's authority to set taxes. Although the ruling did not directly address refunds, the U.S. Court of International Trade stepped in last month and ordered Customs and Border Protection to begin returning the money to eligible importers. The court determined that all importers of record whose entries carried the now-invalid duties are entitled to relief, including interest, The Associated Press reported.
Customs and Border Protection has developed the Consolidated Administration and Processing of Entries system, known as CAPE, to handle the refunds. Instead of processing claims entry by entry, the portal will consolidate eligible payments into single electronic transfers for each importer. As of mid-April, roughly 56,497 importers had registered for electronic payments, covering about $127 billion of the total amount owed. More than 330,000 importers paid duties on more than 53 million shipments overall, noted Reuters.
Only the direct importers who paid the tariffs at the border qualify for refunds. Consumers who faced higher retail prices on imported goods receive no automatic payments. Some delivery companies, however, have pledged to pass refunds along. FedEx stated it would return any recovered funds to customers when it receives them from the agency and plans to begin filing claims Monday. Class-action lawsuits filed by consumer groups against retailers such as Costco and EssilorLuxottica, the maker of Ray-Ban glasses, remain pending in hopes of forcing companies to share proceeds, the Associated Press reported, noting the status of those suits and FedEx's position.
Businesses have spent weeks preparing documentation. Many hired consultants or law firms to compile entry numbers, shipment records, and proof of payment. Jay Foreman, chief executive of toy maker Basic Fun, which sells Tonka trucks and Care Bears, told Reuters he is "locked and loaded" but worried the new portal could crash under high demand. "It's not like Taylor Swift tickets going on sale," he said. The news agency quoted several other executives who described the scramble to meet exact filing requirements.
The government began collecting the tariffs just over a year ago and had viewed them as a major new source of revenue. President Trump had promoted the policy as a way to "make America wealthy again." The Supreme Court decision and subsequent refund order represent a significant reversal.
Customs and Border Protection has until early May to appeal the Court of International Trade's directive, but agency officials have indicated in filings that they are proceeding with the launch as ordered. The court confirmed that initial claims covering roughly $127 billion were ready for processing, The Wall Street Journal reported, with an expected start date of April 20.
Interest continues to accrue on the unpaid refunds, adding to the final cost borne by taxpayers. Some estimates placed the monthly interest burden in the hundreds of millions of dollars if delays persisted. Small businesses in particular have described cash-flow strain from the original duties and now hope the refunds will provide relief, The Associated Press reported.
