The Trump administration has begun accepting applications for over $166 billion in refunds on tariffs imposed under President Donald Trump's emergency powers, as reported by multiple sources including The Guardian and BBC. The digital claims system, named CAPE (Consolidated Administration and Processing of Entries), went live on Monday.
Key Takeaways
The Trump administration has launched a system to process over $166 billion in tariff refunds following a Supreme Court ruling. The portal, CAPE, is now accepting applications from businesses that paid the tariffs. However, consumers who bore the cost through higher prices are unlikely to see direct benefits.
The Supreme Court ruled in February that the president lacked legal authority to impose these tariffs under the 1977 emergency statute. Chief Justice John Roberts, along with Justices Neil Gorsuch and Amy Coney Barrett, formed the majority opinion, while Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented.
According to The Guardian, more than 3,000 companies, including Skechers, Revlon, Toyota, Nintendo of America, FedEx, and Costco, have already sued the administration to secure their refunds. These companies are legally eligible for claims as they officially paid the tariffs. However, ordinary consumers who absorbed the cost through higher prices on various goods will not receive direct compensation.
FedEx has stated it will pass refunds back to its customers, while Costco's CEO Ron Vachris suggested the retailer could lower prices if it receives money back. Despite these assurances, some shoppers have filed lawsuits against retailers like Costco and FedEx, unconvinced by vague promises of cheaper goods.
The CAPE system is expected to process refunds within 60 to 90 days. However, it has limitations in its first phase, processing only unliquidated entries or those liquidated within the past 80 days. Businesses with goods tied up in legal disputes or other unresolved customs processes will not be able to claim refunds yet.
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