Billions in Tariff Refunds Start Flowing

The U.S. Monday began rolling out a system to return more than $166 billion in tariffs, following the Supreme Court's ruling that the Trump administration overstepped its authority in imposing the levies.

More than 56,000 importers have already registered ahead of the program’s launch, according to Customs and Border Protection, highlighting the intense demand.

Under CBP’s new program, companies that paid the tariffs can apply for refunds through an online portal known as "CAPE" (Consolidated Administration and Processing of Entries).

THE 'CAPE' PORTAL

Here is the URL to where businesses can apply for tariff refunds: Customs and Border Protection’s CAPE portal (https://ace.cbp.gov/s/login/).

However, the process is complex — and slow.

As Pete Mento, a licensed customs broker and director of global trade advisory services at advisory firm Baker Tilly, said in a post on LinkedIn:

“CAPE is clearly designed to make intake easy. Almost deceptively easy. Nothing in this update suggests CBP is relaxing scrutiny on the back end. If anything, this feels like ‘get it in the door quickly, we’ll decide what happens after.’”

Americans paid higher prices as tariffs drove up the cost of everyday goods. Now that those tariffs have been struck down, a key question remains: Will consumers get any of that money back?

Some Democrats are pushing to make sure they do.

Lawmakers on the left are calling for refunds to go directly to households, arguing that Americans ultimately bore the cost of the tariffs through higher prices at the store.

For now, at least, the government’s refund program is aimed at businesses — not consumers — and there is no requirement that companies pass the money along.

That means billions of dollars could flow back to importers while shoppers see little to no direct benefit.

Businesses must file detailed claims through the government’s ACE system, uploading large batches of transaction data for review. Each submission can include thousands of entries, which are then checked to ensure they qualify under the rules before any money is paid out.

Even after approval, refunds could take months.

Officials say payments may begin within 60 to 90 days, but delays are possible as claims are reviewed in phases.

For many Americans, that timeline raises another issue: even if the money flows back to companies, there’s no guarantee it will trickle down to the people who ultimately paid the tariffs out of their pockets.

Now that refunds are being issued, companies are free to keep the money, lower prices, or offer discounts — but they are not required to do any of those things.

Some firms, including two shipping companies that collected tariff-related fees directly from customers — UPS and FedEx — have indicated they may return funds once they receive them.

HEDGE FUNDS GET INTO THE GAME

At the same time, a new group is stepping in to profit from the process: hedge funds.

Financial firms are offering to buy companies’ tariff refund claims upfront, giving businesses immediate cash instead of forcing them to wait for government approval. In return, the funds take a cut — meaning they could end up profiting from refunds tied to tariffs that consumers ultimately paid.

It’s a sign of just how tremendous the opportunity is.

The rollout itself is happening in stages. The first phase focuses on more recent tariff payments, while older claims will be handled later. That means it could take a long time before the full $166 billion is distributed.

And even then, consumers may still be waiting.

Some Democrats have floated proposals to send direct payments to Americans or require companies to share refunds, but those ideas face political and legal hurdles. For now, the system remains focused on reimbursing businesses.

Meanwhile, lawsuits are beginning to emerge as consumers and advocacy groups try to force companies to return some of the money. The outcome of those efforts is uncertain and could take years to resolve.

The Trump administration has signaled it may pursue new tariffs under different legal authorities, raising the possibility that similar costs could return.

Treasury Secretary Scott Bessent indicated the tariffs could return as early as July, while industry-specific levies imposed under Section 232 of the 1962 Trade Expansion Act remain in effect.

White House Natinoal Economic Council Director Kevin Hassett in a recent TV interview even said that even if refunds go out to businesses and Americans — there's alternative authorities besides the Trump administration "that perhaps could reduce that number [$166 billion, plus interest] quite a bit."

Newsmax Wires contributed to this report.