U.S. Opens $166 Billion Tariff Refund Portal Following Supreme Court Ruling

The U.S. Customs and Border Protection (CBP) is launching a new digital portal on Monday, April 20, to facilitate the return of an estimated $166 billion in tariff refunds. The move follows a February 6-3 Supreme Court ruling that stripped the presidency of the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). The Consolidated Administration and Processing of Entries (CAPE) portal will allow eligible importers to claim funds electronically via the ACE Secure Data Portal.

The Details

The CAPE portal launches its first phase on Monday, focusing on unliquidated entries and those liquidated within approximately 80 days of the filing date. This initial stage is expected to cover roughly 63% of the IEEPA tariffs, according to Flexport president Sanne Manders. Importers must submit their requests as CSV files containing up to 9,999 entry numbers per declaration; once accepted, these filings cannot be amended.

CBP officials have indicated that the vast majority of eligible importers are prepared for the transition. Approximately 82% of importers have already registered for electronic payments, representing an estimated $127 billion in owed funds. More than 56,000 U.S. importers have registered in the system as of mid-April. Once a CAPE declaration is accepted, the agency anticipates issuing refunds via Automated Clearing House (ACH) transfers within 60 to 90 days, including statutory interest.

While the portal is designed for efficiency, some industry experts warn that the ease of submission may be misleading. Pete Mento, a licensed customs broker at Baker Tilly, noted that the simplified intake process does not necessarily imply a relaxation of government scrutiny on the backend of the refund process.

Despite the relief for businesses, individual consumers remain ineligible for direct refunds from the government. This gap has triggered a wave of class-action lawsuits against major corporations, including FedEx and Costco. The litigation alleges that these companies may engage in 'double recovery' by collecting government refunds while continuing to hold costs previously passed on to consumers via surcharges and higher prices.

Context

The legal battle began shortly after President Trump's 'Liberation Day' announcement on April 2, 2025, which introduced a series of 'reciprocal' tariffs and levies on China, Mexico, and Canada. The Liberty Justice Center challenged these measures in the case of V.O.S. Selections, Inc. v. Trump, arguing that the President lacked the constitutional power to impose such taxes without congressional approval.

On February 20, 2026, the Supreme Court ruled in favor of the challengers, determining that the IEEPA does not authorize the imposition of tariffs. The decision was further reinforced on March 4, 2026, when the Court of International Trade ordered the government to provide refunds with interest to virtually all importers who had paid the affected duties.

In response to the ruling, the administration moved quickly to maintain some level of trade leverage. Within five hours of the Supreme Court decision, the government imposed new tariffs at a 10% rate under Section 122 of the 1974 Trade Act. This new approach has already been met with fresh legal challenges from the Liberty Justice Center.

What's Next

The current phase of refunds is only the beginning of a complex financial unwinding. CBP has yet to announce a firm timeline for Phase 2 and subsequent stages, which will handle more complicated cases, including drawback claims and historically liquidated entries.

Market volatility may increase as hedge funds move to capitalize on the refund window. Some funds are already offering to purchase tariff refund claims from businesses at a discount, providing immediate liquidity to importers who cannot wait the 60-to-90-day government processing window.

Treasury Secretary Scott Bessent has suggested that tariffs could return by July, signaling a persistent desire by the administration to use trade barriers as a policy tool despite the judicial setbacks. The outcome of the pending challenges to the Section 122 tariffs will likely determine if the U.S. enters a cycle of repeated legal contests over presidential trade authority.