If your business imported goods subject to the now-invalidated International Emergency Economic Powers Act (IEEPA) tariffs, you may be entitled to a substantial refund. As of April 20, 2026, the federal government has begun accepting refund applications through a new online portal, but importers should not rely on the system as the only path to recovery given ongoing technical and administrative challenges and the government’s shifting approach to tariffs.
The Supreme Court’s Ruling
On February 20, 2026, in a 6-3 decision, the Supreme Court held in Learning Resources, Inc. v. Trump, No. 24-1287, that IEEPA does not authorize the President to impose sweeping tariffs. The ruling invalidated tariffs on imports from Canada, Mexico, and dozens of other countries, including rates as high as 145% on goods from China. In March, the Court of International Trade intervened and ordered the government to return the money to importers.
The CAPE Refund Portal
On April 20, 2026, U.S. Customs and Border Protection (CBP) launched the Consolidated Administration and Processing of Entries (CAPE) portal, a new online system through which businesses can request refunds for tariffs paid under the invalidated IEEPA orders. The scale is significant: the government owes an estimated $166 billion to approximately 330,000 importers, with the outstanding balance accruing roughly $650 million in interest each month, or about $22 million per day.
Building the CAPE system presented significant technical challenges. At the outset, CBP had no way to deposit money into the bank accounts of most importers. As of launch, over 56,000 importers have enrolled, accounting for 82% of IEEPA-related entries and approximately $127 billion in tariff deposits. Refunds are not automatic, and only importers of record are eligible to apply. CBP estimates that approved applications will take 60 to 90 days to process, though importers should be skeptical of that timeline, given the scale of the operation. Moreover, as we alerted clients here, the administration is imposing new tariffs under alternative statutory authority and has opened sweeping trade investigations in an effort to reimpose tariffs. The White House has declined to say whether it will attempt to return to court in a bid to halt some or all of the refunds. White House National Economic Council Director Kevin Hassett suggested that “alternative authorities” could reduce the amount owed importers “quite a bit.” Importers also face a procedural tension: entries with outstanding Customs protests are ineligible for immediate processing, yet importers who fail to file a protest within 180 days of liquidation risk forfeiting their refund rights. Businesses should work with their legal counsel to navigate this timing issue.
Secondary Market Options
For businesses that need cash now rather than waiting months for the refund process to play out, a secondary market is emerging. Hedge funds and financial services firms are offering to purchase importers’ tariff refund claims at a discount. In exchange, the purchaser takes on the administrative burden and timeline risk of the CAPE process. The discount size reflects the uncertainty surrounding the refund timeline, the possibility of a government appeal, and the complexity of the claims process. This option may suit importers who lack the internal resources to manage the refund process or who have pressing liquidity needs, though businesses should evaluate the terms of any such arrangement with their advisors.
Consumer Pass-Through and Related Litigation
Another critical issue for businesses to anticipate is the growing pressure to pass tariff refunds through to consumers. Many companies passed tariff costs on to customers through higher prices for goods. Now that the tariffs have been invalidated, consumer advocates and class-action plaintiffs are demanding that businesses share the refund proceeds. At least one major company has committed to returning refund money to customers. Businesses should consult with their legal teams about their obligations and potential exposure to consumer claims as they begin to receive refunds.
Looking Ahead
The launch of CAPE represents meaningful progress toward resolving one of the largest tariff refund events in recent history. Importers should work with their counsel to act on multiple fronts, including enrolling in CAPE, preserving protest rights, preparing for potential consumer claims, and consulting with legal counsel, to protect their interests in a trade environment that remains uncertain.
