Tariff Refunds-Updates and How to Claim Them

The following is a summary of the latest developments regarding Trump’s Tariffs that the International Emergency Economic Powers Act (IEEPA tariffs) and recommended steps for importing companies to take regarding the receipt of refunds and interest for the paid IEEPA tariffs.

• On February 20, 2026, the U.S. Supreme Court (Court) issued a ruling in the case of Learning Resources Inc. v. Trump, No. 24-1287 (U.S. Feb. 20, 2026) stating that the IEEPA did not give President Trump the authority to impose tariffs through a series of 2025 executive orders.  However, the Court did not address the issue of refunds for tariffs already collected and left the matter to be resolved by the U.S. Court of International Trade (CIT).
• On February 20, 2026, President Trump issued an Executive Order revoking the tariffs but did not address the issue of refunds.
• On March 4, 2026, CIT issued an order directing U.S. Customs and Border Protection (CBP) to process refunds automatically for all companies that paid IEEPA tariffs.  As a result, all importers of record whose entries were subject to IEEPA duties are entitled to refunds, regardless of whether they had sued the government, but the government will not pay refunds to the final commercial customer or individual consumer.
• On March 6, 2026, CBP filed with CIT an affidavit stating that immediate compliance was not logistically possible.  Also, the affidavit provided that CBP is creating new web-based system functionality to deal with refunds and interest payments, and that it hoped to have the system ready for use within 45 days.
• On March 12, 2026, CBP reported to CIT that parts of the new system were between 40% and 80% complete.  CIT ordered CBP to file another status report within 7 days.
• After the Court decision in Learning Resources, the Trump administration has signaled a combative stance on tariffs and refunds, which suggests that the refund process could be protracted and that the government may attempt to limit eligibility or require extensive documentation from importers. 
• For instance, shortly after the Court decision in Learning Resources Trump responded by invoking Section 122 of the Trade Act of 1974, citing a “balance-of-payments” issue to set a 10% tariff on most imports, valid for up to 150 days.  The new 10% tariffs face immediate legal challenges over the legality of exempting certain nations (like Canada and Mexico) while acting under a provision requiring uniform application.  Trump has stated his intention to raise these tariffs to 15%.  Also, Trump might switch the legal basis for these tariffs to Section 301(b) of the Trade Act of 1974, which authorizes investigations into whether U.S. trading partners use unfair trade practices. The Office of the U.S. Trade Representative has stated that it would begin investigations into excess manufacturing capacity and production in China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.  If the investigations reveal that such practices are in effect, the available remedies under Section 301(b) include tariffs.
• President Trump had suggested that his administration might ask the Court to reconsider its ruling in Learning Resources.  The deadline for making that request to the Court was March 17, 2026.  However, the Trump administration did not make such request by the deadline.  
• Senate Democrats have introduced a bill that would require CBP to pay all refunds, with interest, within 180 days, prioritizing small businesses.  The bill expresses the sense of Congress that businesses should pass refunds on to customers but does not mandate it.  The bill has not yet been enacted, and the refund process remains governed by ongoing litigation and administrative action.
• On April 20, 2026, the CBP refund system began accepting tariff refund requests.
• On April 21, 2026, President Trump encouraged companies not to seek tariff refunds by stating that that he’d remember companies that decline to seek refunds paid.

Although the Court’s decision in Learning Resources has opened the door for importers to seek refunds with interest for tariffs paid under IEEPA, the process is in the early stages of judicial and administrative resolution.  The CIT is actively managing the refund process, but the government’s evolving position and the unprecedented scale of the operation mean that the timing, eligibility, and procedures for refunds are still being determined. 

We cannot rule out the possibility that the administration will take action to try to avoid or delay refunds.  In fact, President Trump has signaled in a press conference that the administration may be planning to litigate the issue of refunds.  Also, on Tuesday, April 21, 2026, President Trump when questioned about whether companies such as Amazon.com Inc. and Apple Inc. should request refunds on the unlawful tariffs, he responded by saying that “it’s brilliant if they don’t do that.”

CIT has jurisdiction to determine the challenges to the IEEPA tariffs.  Thus, CIT litigation will resume, and CIT will probably provide further guidance on the issue of relief for importers.

Since more than 53 million import entries included tariffs under the IEEPA and importers’ tariff refund requests could total more than $160 billion, the CBP tariff refund system that began on April 20, 2026, could be the largest repayment by the U.S. government in its history.

CBP is planning to implement the Consolidated Administration and Processing of Entries tool, called CAPE in different phases.   In the first phase CAPE will process paperwork for certain straightforward and recent import entries, involving certain unliquidated entries and certain entries within 80 days of liquidation.  Later phases will handle more complex refund entries.

Refund declarations will be limited to the official importer-of-record or their CBP broker, and the filer must already have an account set up with CBP’s Automated Commercial Environment (ACE).  

However, the determination of who will ultimately retain the refunds, will depend on supplier arrangements, and whether there are express or implied agreements regarding tariffs.  For instance, companies that expressly announced that they were raising prices due to tariffs or included a tariff on an itemized invoice, could have an obligation to pass refunds on to customers.  However, in situations where companies that did not make such announcement, but the customers perceived that they were paying higher prices due to tariffs, it is uncertain whether the complies could have an obligation to pass refunds on to customers. 

Pending further guidance from the CIT and/or CBP, importing companies wishing to receive tariff refunds for payments made under IEEPA, are advised to do, without limitation, the following things:

• Immediately register for CBP’s ACE portal and Automated Clearing House (ACH) for electronic refunds.  Importers must enroll their bank details in this portal to receive a refund digitally because CBP will not issue paper checks.
• Identify and document all import entries subject to IEEPA. (e.g., Chapter 99 provisions), including specific entry numbers and proof of payment.  Maintain complete import records and monitor the status of their entries, as the government may require proof that the tariff costs were not passed on to customers or may demand detailed paperwork for each shipment.  Companies might be able to estimate and calculate their potential refunds and interest by identifying specific, paid “entry summaries” and associated interest.
• Ensure their systems are upgraded to accommodate new guidance and HTSUS modifications and maintain accurate records and documentation.  System upgrades should focus on electronic recordkeeping, integration of updated tariff schedules, and compliance with CBP’s evolving refund processing requirements.
• Track the status of entries to ensure they are not finalized before a claim is filed.  If entries are already liquidated, companies may file protests within 180 days of liquidation.
• Follow CBP’s administrative refund procedures, via Post Summary Corrections (PSCs) and protests; and/or
• File suit at the CIT under the court’s residual jurisdiction provision, 28 U.S.C. § 1581(i), to challenge the lawfulness of IEEPA tariffs collected by CBP. 

In summary, companies must actively monitor developments and be prepared to act quickly to ensure that they are getting their refunds while the refund structure begins to develop and many uncertain factors exist.  

Finally, companies should assume that their refund claims and related tax structuring will be audited and thus, must maintain detailed documentation in preparation for such an audit.  CBP expects the companies submitting tariff refund requests to attest to the validity of their refund entries, including the country of origin, classification, and all the things that require detailed documentation.