On Monday, U.S. Customs will begin accepting refund requests from businesses that paid tariffs before the Supreme Court struck down most of the charges as unconstitutional. After weeks of uncertainty about whether and how refunds would be handled, importers are expected to line up to submit claims through the new online portal.
The agency is launching the effort in phases, so not every import affected by the court ruling will qualify immediately. Federal guidance warns that once a refund request is approved, it could take roughly 60 to 90 days to deliver funds to the claimant. Customs built a new system called CAPE to process refunds; officials say CAPE will handle the initial batch and later work through older, finalized payments.
Customs estimates it owes about $166 billion in tariff refunds. Agency filings indicate the first phase will cover the majority of affected imports, largely those payments that are still under federal review rather than fully finalized. A Customs official told a judge that most eligible importers enrolled for electronic payments — a requirement for this first rollout — and that group is owed roughly $127 billion.
Economists and legal experts say most consumers will probably not receive direct refunds. Tariff costs are often distributed across supply chains: manufacturers, suppliers, importers and retailers can all absorb parts of the charge. With tariffs imposed during a period of high inflation, many companies say they shouldered much of the burden to avoid passing sudden price spikes on to shoppers.
Retailers face particular uncertainty because refunds will go to whoever actually paid the customs bill. Many store owners paid tariff surcharges indirectly through higher wholesale invoices. Joe Kimray, owner of B & W Hardware in North Carolina, said he plans to discuss refunds with manufacturers and hopes some of the money will be passed along, but he does not expect to receive a direct check; adjustments might instead come as lower wholesale costs or future discounts.
Consumers seeking reimbursement have also pursued legal routes. Class-action suits have been filed against companies including Costco and FedEx. FedEx has pledged to pass along any refunds it receives to customers. Costco’s chief executive told investors the company intends to return value to shoppers through lower prices and by explaining how it will handle any refund proceeds.
Customs’ initial phase concentrates on duties that remain unresolved in customs reviews — reviews that can take nearly a year to complete — while payments that were already finalized will be handled later. When asked about workload and processing capacity, a Customs and Border Protection spokesperson said CAPE was developed ‘to efficiently process refunds’ and directed importers and brokers to updated guidance on the tariff-refund process.
Trade groups representing small businesses hailed the rollout as a victory for Main Street and urged the government to make the refund system workable for smaller importers. The portal launch is the first concrete step after the Supreme Court’s decision two months ago; the high court declined to spell out a refund mechanism, leaving the practical and administrative details to federal agencies.
NPR’s Scott Horsley contributed reporting to this story.