On Monday, U.S. Customs will begin accepting refund claims for tariffs imposed during the Trump administration that the Supreme Court later ruled unconstitutional. The agency is rolling out the first phase of payments through a new online system called CAPE.
Customs cautions that once refunds are approved they may take about 60 to 90 days to be returned. The initial phase focuses on duty payments that remain technically unresolved because they are still under federal review; older payments that were finalized will be handled in later phases.
Officials estimate total refunds could reach roughly $166 billion. Customs told the court that most eligible importers signed up for electronic payments; that group is owed approximately $127 billion. The agency says CAPE was developed “to efficiently process refunds” and has published updated guidance on how businesses can file claims through the portal.
Small-business advocates welcomed the move after two months of uncertainty following the court ruling. Groups representing Main Street businesses said small firms mobilized and urged the government to create a workable refund process for them.
It is unclear how much of the refunded money will reach consumers. Economists and legal experts say tracing tariff costs through complex supply chains is difficult: manufacturers, importers, suppliers, retailers and shoppers may share or absorb those expenses. Some companies say they absorbed tariff costs rather than raise 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 faced 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 via future discounts, but does not expect direct refund checks.
Shoppers seeking reimbursement have filed class-action suits against several companies, including Costco and FedEx. FedEx has pledged to pass along any refunds it receives to customers; Costco’s CEO has said the company will return value to shoppers through lower prices and by explaining its plans.
NPR asked Customs how many claims CAPE can handle at launch; 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.