The administration of Donald Trump has launched a new system to begin refunding $166 billion in tariffs to US importers, following a ruling by the Supreme Court of the United States that declared the levies unlawful earlier this year, reported Fox News.
The new system, known as CAPE, has been introduced by US Customs and Border Protection to streamline what would otherwise be a complex refund process handled on an entry-by-entry basis.
According to trade experts, the system will allow consolidated electronic payments, making it easier for importers to reclaim funds, although they will still need to file claims.
Reed Smith partner Michael Lowell said the process is essentially a fast-track system, with refunds expected to be processed within 60 to 90 days after submission. He added that if companies file early, payments could begin flowing between mid-June and mid-July.
The rollout marks only the first phase of the refund effort, meaning not all importers or tariff categories will qualify immediately. The refunds stem from a February ruling by the Supreme Court that struck down the tariffs, setting the stage for one of the largest repayment efforts in US history.
Businesses are now expected to rush to file claims to recover billions paid under the now-invalid duties. The scale of refunds reflects how tariff revenues had surged to record highs following the so-called “Liberation Day” duties introduced under the Trump administration.
Tariffs function as a tax on imports, with US companies typically absorbing the initial cost and passing it on through higher prices to wholesalers, retailers, and ultimately consumers, increasing costs across goods ranging from electronics to raw materials.
Despite the ruling, experts say tariffs will remain a core part of US trade policy.
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