US Government Launches $166 Billion Tariff Refund Process Following Supreme Court Ruling
The US government has begun processing refunds for over $166 billion in tariffs imposed during the Trump administration, following a Supreme Court decision that declared these tariffs unlawful.
A new digital claims system, known as Cape, was launched on Monday to facilitate the refund process for importers who paid the tariffs.
The tariffs were imposed under the International Emergency Economic Powers Act (IEEPA) during Donald Trump's presidency but were struck down by the Supreme Court in February 2026.
The US Court of International Trade ordered customs officials to refund the tariffs collected, marking the largest repayment programme in US history.
Approximately 330,000 importers are eligible to reclaim money collected under the so-called "Liberation Day" tariffs, plus applicable interest.
The Cape system is designed to process refunds efficiently by issuing lump sum payments rather than requiring businesses to apply for each item individually.
Customs and Border Protection expects to pay successful applicants within 60 to 90 days of their claims being submitted.
More than 56,000 importers had completed the necessary steps to apply for refunds online by early April, with claims totaling around $127 billion.
Over 3,000 companies have filed lawsuits seeking refunds, including major corporations such as Skechers, Revlon, Toyota, Nintendo of America, FedEx, and Costco.
While importers and large corporations are eligible to claim refunds, individual consumers who indirectly paid higher prices due to the tariffs are not expected to receive compensation directly.
Some consumers have begun filing class action lawsuits against companies they claim passed on the cost of the tariffs, arguing that any refunds businesses receive should be passed on to consumers.
FedEx has stated it will pass refunds back to customers, while Costco has suggested it could lower prices if it receives money back, though some shoppers remain unconvinced.
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