Trump tariff refunds begin. Who qualifies, what consumers should know

U.S. companies that paid now-invalid Trump administration tariffs could begin receiving billions of dollars in refunds this week as federal officials roll out a new claims system designed to speed up the repayment process.

The refunds stem from tariffs President Donald Trump imposed under the International Emergency Economic Powers Act, or IEEPA, before the Supreme Court ruled in February the administration exceeded its authority under the 1977 law.

Now, U.S. Customs and Border Protection is using a newly developed system called the Consolidated Administration and Processing of Entries, or CAPE, to manage the billions in potential tariff refunds.

Here's what it means for businesses as they begin receiving the money, and how it may benefit consumers.

What is CAPE?

Customs officials said CAPE was created to streamline refund requests for IEEPA duties that courts determined should be repaid.

Rather than processing refunds on a shipment-by-shipment basis, CAPE consolidates eligible tariff refunds, including interest, into a single payment for each importer.

The agency launched Phase 1 of the system on April 20. The initial rollout applies only to some shipments still being finalized or recently processed, with more options planned in future phases.

CBP has calculated $35.46 billion in finalized refunds and interest as of May 11, covering 8.3 million shipments, Reuters reported. Overall, as much as $166 billion in tariff collections could eventually be refunded.

Who can apply for tariff refunds?

Only the importers listed on the shipments and the brokers acting on their behalf can submit CAPE refund declarations.

Companies expected to receive reimbursements include major retailers such as Home Depot, Nike, Target and Walmart, MSN reported.

Once applications from companies are validated, CBP updates its records, removes the since-overturned tariff provisions and recalculates duties before issuing refunds.

CBP said valid refunds will generally be issued within 60 to 90 days after a declaration is accepted, though more complex cases could take longer.

How does this affect consumers?

Consumers who paid higher prices tied to tariffs are not eligible for direct government refunds, even though economists say many companies passed at least part of those costs onto shoppers through higher prices.

Still, some businesses have suggested consumers could indirectly benefit. Costco previously said it would pass savings along through lower prices or added member value if tariff refunds are recovered. FedEx said it plans to reimburse customers in situations where it acted as a customs broker.

Trade experts say widespread price cuts remain unlikely in the near term because many companies absorbed significant tariff costs over the last year and may instead use the refunds from the government to offset the hit.

Ongoing tariff uncertainty could also limit any consumer relief. Although the Supreme Court struck down the original IEEPA tariffs, Trump later imposed a temporary 10% tariff under a separate trade authority, and the administration is pursuing additional tariffs that could lead to new import taxes later this year.

Reporter Anthony Thompson can be reached at [email protected] or on Twitter @athompsonUSAT