On Monday, U.S. Customs will begin accepting refund requests from businesses that paid tariffs imposed under the Trump administration and later declared unconstitutional by the Supreme Court. The agency is rolling out the first phase of payouts through a new system called CAPE.
Customs warns that approved refunds may take about 60 to 90 days to be returned. The initial phase targets payments that remain technically unresolved because they are still under federal review; older, finalized duty payments will be addressed in later phases.
Officials estimate total refunds could reach about $166 billion. Customs told a court that most eligible importers signed up for electronic payments and that this group is owed roughly $127 billion. The agency says CAPE was developed “to efficiently process refunds” and points importers to updated guidance on how to file claims.
Small-business advocates celebrated the move after two months of uncertainty following the high court’s ruling. Main Street Alliance said small businesses “organized, spoke out, and won a major victory,” and urged the government to implement a refund process that works for Main Street.
How much of the refunded money will reach consumers is unclear. Economists and legal experts say it’s difficult to trace tariff costs through supply chains: manufacturers, importers, suppliers, retailers and shoppers often share or absorb those expenses. Some companies say they absorbed tariffs to avoid hiking retail prices during a period of high inflation.
Refunds will go to whoever legally paid the customs duty, which may not be the retail store that passed on higher wholesale costs. For example, Joe Kimray, owner of B & W Hardware in North Carolina, says he paid higher wholesale prices rather than tariffs directly. He plans to ask manufacturers to share any refunds, perhaps through future discounts, but does not expect to receive direct refund checks.
Shoppers seeking reimbursement have filed class-action suits against several companies, including Costco and FedEx. FedEx has pledged to pass any refunds it receives back to customers; Costco’s CEO told investors the company would return value to shoppers through lower prices and transparency about its plans.
NPR asked Customs about the volume of claims CAPE can handle on launch day; the agency reiterated that the system was built to process refunds and directed parties to its online guidance.
NPR’s Scott Horsley contributed to this report.