Trump Administration Starts Issuing Tariff Refunds: What You Need to Know

(SeaPRwire) –   The Trump Administration is set to start returning $166 billion in tariff payments this week after a Supreme Court decision in February declared the policy unconstitutional.

U.S. Customs and Border Protection (CBP), the agency overseeing the refunds, opened an application portal for businesses on Monday morning. The refund process is anticipated to take between two and three months.

These repayments represent a potential financial boon for small businesses, which have shouldered the heaviest burden from President Donald Trump’s extensive tariff system introduced last year. The regime applied to imports from nearly every nation.

Initially, Trump asserted his power to enact the tariffs using the International Emergency Economic Powers Act (IEEPA)—a 1977 law designed for national crises. Only the tariffs authorized under this act are affected by the court’s decision. This includes the “reciprocal” tariffs from last April and duties on China, Mexico, and Canada linked to fentanyl trafficking into the U.S.

Businesses have begun filing for refunds

Over 3,000 companies, including prominent plaintiffs such as FedEx, Costco, Skechers, Revlon, Toyota, and Nintendo of America, have already filed lawsuits against the Trump administration to obtain refunds, indicating their belief in the tariffs’ unlawful nature.

Aaron Powell, CEO of the small company Bunch Bikes, prepared his documents for the government’s refund portal weeks in advance. He hopes to quickly apply for a refund he estimates at approximately $120,000.

“I was very proactive following the news, staying updated and knowing the exact steps, so I was prepared to apply the moment the portal opened today,” he told TIME. He acknowledged that other small business owners encountered portal errors due to high demand, but he managed to submit his application with a single spreadsheet within one minute of the site going live.

Powell, who imports bicycle parts, stated the tariffs had an “existential” effect on his company, resulting in a net loss exceeding $200,000 in 2025 and compelling him to seek new investors for survival. Although the refund will be useful, he notes the challenge is not over. Following the Supreme Court ruling, Trump enacted a new 10% tariff in February using Section 122 of the Trade Act of 1974, which permits a president to implement tariffs of up to 15% for 150 days. Additionally, United States Trade Representative Jamieson Greer initiated a review of Section 301 tariffs in March, aimed at addressing “discriminatory” or “unfair” trade actions by partners.

“We now have Section 122 tariffs that are set to expire in July, and they are likely to be superseded by new Section 301 tariffs of an unknown amount and target. Therefore, this refund money will be set aside as a reserve to manage whatever developments occur in the coming months,” he explained. “Furthermore, ongoing conflict has driven up our shipping costs significantly due to increased oil prices.”

Sarah Wells, CEO of Sarah Wells Bags—a small business that produces apparel for breastfeeding postpartum mothers—submitted her refund application within two minutes of the portal opening, she reported. She attributes $500,000 in lost sales in 2025 to tariff-related supply problems and expects to get back $20,000 plus interest, an amount she describes as “meaningful.”

However, she also worries about future challenges from other tariffs implemented by Trump.

“The situation remains chaotic,” she said. “I will only be convinced when the funds are actually returned to my bank account. And even then, I will likely have to use that refund money to pay for the new tariffs.”

While grateful for the potential refund, she noted it does not assist with “rehiring American workers” after she had to reduce her workforce last year.

Both Wells and Powell belong to the coalition We Pay the Tariffs, which includes more than 1,000 small businesses that have opposed Trump’s tariffs.

Who is eligible for the refund?

Refunds for tariffs paid over the past year are not issued automatically to affected businesses. Companies and importers must instead file a claim through the online portal for review.

Powell described the procedure as very straightforward, requiring only a simple spreadsheet upload with a single column listing the import entry numbers subject to an IEEPA tariff.

The refund program will first concentrate on an initial phase of disbursements, restricted to “certain unliquidated entries and certain entries within 80 days of liquidation,” as per federal instructions. After a refund claim is approved, transferring the money back to the importer may take 60 to 90 days.

Court documents from last week indicate the system can process approximately 63% of the affected import filings. The new refund system, named Consolidated Administration and Processing of Entries (CAPE), is eventually intended to handle repayments for older, finalized tariff payments.

Refunds will be distributed electronically, a policy CBP has followed since the beginning of February.

Will consumers receive refunds?

U.S. consumers, along with American importers, have been significantly impacted by the higher prices and supply chain disruptions caused by Trump’s tariffs.

A January study by the Germany-based Kiel Institute, an independent economic research organization, concluded that 96% of the cost from tariffs is transferred to U.S. purchasers.

The study determined that “Whether through higher prices on imported goods, higher prices on domestically produced goods that use imported inputs, or reduced availability and variety of products, American households pay for the tariffs.”

Data from the Congressional Joint Economic Committee shows that the average American family has paid over $1,700 in tariff-related expenses.

Despite this, it is highly improbable that consumers will be compensated for the price hikes over the past year.

Individual consumers are not eligible to apply for refunds. Some companies, such as shipping leader FedEx, have indicated they intend to pass their refunds on to the customers who initially paid the surcharges. Other businesses have stated they plan to reduce prices for consumers.

“Following our past approach when legal actions have recovered charges that were passed on to our members, we are committed to identifying the optimal method to return this value through lower prices and enhanced value,” Ron Vachris, CEO and President of Costco, stated during a March earnings call.