Tariff refund system launching soon. What does it mean for consumers?

U.S. Customs and Border Protection is set to launch a system to begin refunding companies that paid tariffs on imports after the Supreme Court ordered the government to do so earlier this year.

In an April 14 court filing, CBP said it will launch the first phase of the system, known as the Consolidated Administration and Processing of Entries, on April 20.

The CAPE system is meant to consolidate the refund process so importers will receive one electronic payment rather than CBP processing refunds on an entry-by-entry basis, the agency said on its website.

In February, the Supreme Court struck down sweeping tariffs, ruling that President Donald Trump did not have the authority to impose duties on companies importing goods from other countries.

The following month, a U.S. trade court judge ordered the government to refund importers who paid a total of $166 billion in tariffs, Reuters reported.

How does the tariff refund system work?

Trump used a law known as the International Emergency Economic Powers Act to impose tariffs on nearly all goods imported into the U.S., beginning in early 2025, as part of his economic policy.

Importers who paid tariffs under IEEPA are eligible to request refunds using the CAPE system. To do so, importers can submit a filing known as the CAPE Declaration in the agency's Automated Commercial Environment Secure Data Portal. The full process is outlined on CBP's website.

Brandon Lord, a CBP official, wrote in a court filing that as of April 9, more than 56,000 ​importers had completed the existing process to receive electronic refunds for tariffs, totaling $127 ‌billion in reimbursements.

What do tariff refunds mean for consumers?

Though refunds are coming, Trump has continued to push to implement tariffs under a different statute. Those duties are being challenged in court, Reuters reported.

However, if tariffs continue, consumers could continue to pay the price.

A February report from the Federal Reserve Bank of New York found that American consumers and companies paid nearly 90% of the cost of Trump’s tariffs in 2025 – a trend that could continue if tariffs stay in place this year.

A recent CNBC survey of chief financial officers across sectors found that while executives' companies plan to apply for tariff refunds, they aren't planning to share that money with consumers.

Contributing: Maureen Groppe and Daniel de Visé, USA TODAY; Reuters

Melina Khan is a national trending reporter for USA TODAY. Keep up with her on X @melinakh and Instagram @bymelinakhan.