The United States government has begun the process of refunding up to $166 billion (£130 billion) in tariffs charged under President Donald Trump, after the Supreme Court ruled the policy was imposed without constitutional authority. The Trump administration on Monday launched a new system — known asCAPE— to begin refunding the duties to US importers, allowing Customs and Border Protection to issue consolidated electronic payments and streamlining what would otherwise be a complex, entry-by-entry refund process.
Importers and their brokers are now able to begin claiming refunds through an online portal, with Customs and Border Protection administering the system. As of 14 April,56,497importers had completed registration and were eligible for refunds totalling $127 billion (£99.6 billion), including interest.
In a 6-3 decision, the justices ruled that the tariffs exceeded the powers granted to the president by Congress under a 1977 law providing authority to regulate commerce during national emergencies created by foreign threats. The ruling, handed down on 20 February 2026 inLearning Resources, Inc. v. Trump, was authored by Chief Justice John Roberts.
Chief Justice Robertswrotethat based on 'two words separated by 16 others' in the statute — 'regulate' and 'importation' — the President had asserted 'the independent power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time.' Those words, he wrote, 'cannot bear such weight.' The court further noted that IEEPA contains no reference to tariffs or duties, and that until 2025, no president had ever read the law to confer such power.
The decision invalidated both the 'Reciprocal Tariffs' first imposed on 'Liberation Day' in April 2025 and the 'Trafficking and Immigration Tariffs' relating to fentanyl, representing a significant check on executive authority.
Customs and Border Protection said in court filings that over 330,000 importers paid a total of about $166 billion (£130 billion) on over 53 million shipments. Not all of those orders qualify for the first phase of the refund rollout.
Refunds are limited initially to cases in which tariffs were estimated but not finalised or within 80 days of receiving a final accounting. To receive refunds, importers must register for CBP's electronic payment system. Reed Smith partner Michael Lowell noted that 'customs is estimating that refunds will be processed within 60 to 90 days after submission,' and that 'if importers file as soon as the system opens, refunds could begin flowing by mid-June to mid-July.'
Crucially, refunds go toimporters of record— the companies that actually paid the duties to Customs — not directly to consumers. The US Chamber of Commerce has made clear that 'businesses that did not directly pay the tariffs are not eligible for a refund' and that only tariffs applied under IEEPA qualify.
BREAKING: The US Government has begun refunding up to $166 billion in tariffs charged under President Trump after the Supreme Court ruled the policy unlawful.Beginning today, businesses can file claims through a new customs system.Over 330,000 importers across 53 million…pic.twitter.com/WVdYIfyrPU
Despite the ruling, the broader use of tariffs under the Trump administration is not expected to cease. Within hours of the Supreme Court's decision, President Trump signed a proclamation imposing a new10 per cent global tariffunder Section 122 of the Trade Act of 1974, effective 24 February 2026.
Source: International Business Times UK
