The Trump administration has begun accepting applications for over $166 billion in refunds on tariffs imposed under President Donald Trump's emergency powers. The digital claims system, named CAPE (Consolidated Administration and Processing of Entries), went live on Monday.
Key Takeaways
The Trump administration has started accepting applications for over $166 billion in refunds on tariffs imposed under President Donald Trump's emergency powers. The Supreme Court ruled these tariffs were illegally imposed. Over 3,000 companies, including FedEx and Costco, are eligible for claims but ordinary consumers will not receive direct compensation.
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, Costco, UPS, and DHL 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.
Major shippers including FedEx, UPS, and DHL have filed claims for tariff refunds with U.S. Customs and Border Protection (CBP). These companies pledged to return money to customers who shouldered added tariff costs tied to President Trump's International Emergency Economic Powers Act (IEEPA) tariffs. A UPS spokesperson confirmed that it is filing claims for refunds on qualifying tariffs through CBP's CAPE portal and will reimburse customers once the federal government approves the claims.
FedEx also said it plans to repay customers who bore the cost of the levies, submitting declarations for eligible entries. DHL started submitting claims as soon as the portal opened on Monday and stated that it would pass refunds to the party that originally paid duties. 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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