Over $166 Billion In Tariff Refunds — Is Your Business Leaving Money On The Table?

If your company imports goods into the United States, there’s a chance you’re owed money, and we’re not talking small change. The U.S. Supreme Court recently ruled that tariffs collected under the International Emergency Economic Powers Act (IEEPA) were illegal from the start. The result? The government owes businesses an estimated $166 billion in refunds, covering over 330,000 importers.¹ Refunds are already being processed, but here’s the catch: the process is complicated, the government is fighting back, and the window to act is closing fast.

What Happened?

In 2025, the Trump administration used IEEPA, a 1977 emergency powers law traditionally used for sanctions, to impose sweeping tariffs on imports from China, Mexico, Canada, and eventually nearly every country in the world. The Supreme Court said no in a 6-3 ruling in February 2026. The Court held that IEEPA doesn’t give the President the power to raise revenue through import duties. That’s Congress’s job. The Court of International Trade then ordered the government to refund all the money it collected, but the government appealed, arguing it shouldn’t have to pay back everyone, only those who sue. That fight is now pending in the Federal Circuit, and billions of dollars hang in the balance.

How Refunds Work and Why Timing Matters

Customs and Border Protection is processing refunds through a system called Consolidated Administration and Processing of Entries (CAPE), rolling out in phases. Phase 1 is already underway with nearly $95 billion has been queued for refund. ² Phase 2 launches June 29, 2026, covering reconciliation entries. Phase 3, expected by late July, will handle older finally liquidated entries, but likely only for importers who’ve filed a lawsuit. If you haven’t taken action, you could miss out on that piece entirely.

The Bottom Line

This is potentially significant money, and the clock is ticking. The filing process is unforgiving (nearly 4 in 10 early filings failed, and once accepted, you can’t fix mistakes)³. Importers who act now are in the best position to recover what they’re owed. Those who wait may find the door has closed. If you think your business might be affected, let’s have a conversation.

Footnotes

1. https://www.law360.com/tax-authority/international/articles/2489083/4-questions-as-gov-t-appeals-illegal-tariff-refund-suit

2. https://www.law360.com/tax-authority/international/articles/2489083/4-questions-as-gov-t-appeals-illegal-tariff-refund-suit

3. https://markets.businessinsider.com/news/stocks/ieepa-tariff-refunds-tariff-recovery-group-scales-up-as-cape-phase-1-deadline-nears-1036248229