The Trump administration has started accepting applications from businesses seeking refunds on more than $166 billion in tariffs, following a Supreme Court decision that declared the president lacked the legal authority to impose them.
On Monday, the administration rolled out a new digital claims system called Cape. According to court documents, the system is designed to handle about 63 percent of the affected import filings right away, with the rest to be added later.
In February, the Supreme Court ruled against the tariffs in a 6-3 decision. Chief Justice John Roberts wrote the majority opinion, stating that a 1977 emergency law invoked by Trump did not grant the president such broad power to place tariffs on imports. Two of Trump’s own Supreme Court appointees, Justices Neil Gorsuch and Amy Coney Barrett, joined the majority. Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented.
Customs officials admitted in court filings that they had to build an entirely new processing system from the ground up. One major challenge was creating a way to directly deposit refund money into most importers’ bank accounts, something that did not previously exist.
More than 3,000 companies have already filed lawsuits to recover their money, with some taking legal action even before the Supreme Court’s final ruling. This early wave of lawsuits showed how strongly the business community believed the tariffs were illegal. Among the high-profile companies involved are Skechers, Revlon, Toyota, Nintendo of America, FedEx, and Costco.
Only the companies that directly paid the tariffs—mostly large importers and corporations—are eligible to file claims. Ordinary Americans who ended up paying higher prices for electronics, clothing, and other goods cannot apply for refunds themselves. Whether everyday consumers benefit will depend on what businesses decide to do with the money they receive.
Some companies have already signaled how they plan to handle the refunds. FedEx said it will pass the money back to the customers who originally paid the tariffs through higher shipping costs. Costco has hinted that it might lower prices if it gets its refunds, but some shoppers are skeptical and have even sued the retailer, saying a vague promise is not enough.
Businesses that submit complete paperwork to Customs and Border Protection can expect to wait between 60 and 90 days before the money appears in their accounts.
The new system does have some early limitations. In its first phase, it will only fully process refunds for imports that are either still unliquidated or were liquidated within the past 80 days. Companies whose goods are involved in ongoing legal disputes, anti-dumping investigations, or other unresolved customs issues will have to wait longer before they can file claims.
This refund process marks a significant reversal for the Trump administration and could result in one of the largest returns of tariff revenue in U.S. history. The outcome will likely shape how future presidents approach trade policy and emergency economic powers.
