The Supreme Court of the United States has ordered the federal government to return up to $166 billion in tariffs imposed under Donald Trump, triggering one of the largest refund efforts in U.S. economic history and sharply limiting presidential authority over trade policy. The ruling, delivered in February, has now moved into its implementation phase, with U.S. Customs and Border Protection launching a new system to process payments to importers.
The refund mechanism, known as CAPE, allows companies to reclaim duties paid under tariff programs the Court determined were enacted without constitutional authority. As of April 14, CBP reported that 56,497 importers had registered, representing claims totaling approximately $127 billion, including accrued interest.
The legal turning point came in Learning Resources, Inc. v. Trump, where a 6-3 majority concluded that the administration exceeded powers granted under a 1977 statute governing national emergency economic actions. Chief Justice John Roberts wrote that the statutory language cited by the administration-"regulate" and "importation"-"cannot bear such weight," rejecting the argument that it authorized sweeping tariff authority.
The Court found that the International Emergency Economic Powers Act contained no explicit reference to tariffs, noting that "until 2025, no president had ever read the law to confer such power." The decision invalidated multiple tariff programs, including those tied to fentanyl trafficking and the so-called "Reciprocal Tariffs" introduced in April 2025.
For businesses, the ruling initiates a complex but potentially lucrative recovery process. CBP estimates that more than 330,000 importers paid duties on over 53 million shipments, forming the basis for refund eligibility.
Key refund parameters include:
- Claims limited initially to tariffs not yet finalized or within 80 days of final accounting
- Payments issued only to importers of record, not downstream consumers
- Processing timelines estimated at 60 to 90 days after submission
Michael Lowell, a partner at Reed Smith, said "customs is estimating that refunds will be processed within 60 to 90 days after submission," adding that early filers could see payments "by mid-June to mid-July."
The U.S. Chamber of Commerce emphasized that eligibility is narrowly defined, stating that "businesses that did not directly pay the tariffs are not eligible for a refund," reinforcing that relief will flow primarily to companies that absorbed the upfront import costs.
Despite the ruling, the administration has shown no sign of retreating from tariff-driven trade policy. Within hours of the decision, President Trump invoked Section 122 of the Trade Act of 1974 to impose a new 10% global tariff, signaling a shift rather than a rollback in strategy.
Lowell described tariffs as "a central component of the administration's economic and trade policy," adding that they are "not going anywhere." Existing measures under Sections 232, 301, and 201 remain intact, preserving a broad framework for continued trade intervention.
