Trump’s Tariff Debt: What You Need to Know About Refund Portal
3The US government has opened an online portal for importers and customs brokers to request refunds on tariffs imposed by President Trump, which were ruled as illegal by the Supreme Court. This move comes two months after the court decision, which stated that Trump’s use of the International Emergency Economic Powers Act (IEEPA) tariffs was unlawful.
According to the US Customs and Border Protection (CBP), over 330,000 importers paid a total of $166 billion in IEEPA duties as of March 4. The CBP has launched the Consolidated Administration and Processing of Entries (CAPE) portal for IEEPA refunds, which will issue refunds within 60 to 90 days after acceptance of a CAPE declaration.
However, it appears that the Trump administration is exploring ways to reduce the total amount of refunds. National Economic Council Director Kevin Hassett mentioned that there are alternative authorities that could lower the refund amount significantly. US Trade Representative Jamieson Greer is reportedly studying this option carefully.
The government has divided the CAPE process into phases, with the first phase focusing on certain unliquidated entries and those no more than 80 days past liquidation. The remaining refunds will be issued in future phases, but it’s unclear when these will occur. The CBP is still working out how to implement these phases and provide updates to the US Court of International Trade.
Despite this development, Trump has shown no intention of abandoning his tariff policies. He recently imposed a 10 percent tariff under the Trade Act of 1974, which some speculate may result in gross refunds for businesses required to pay the tariff. A coalition of US states is suing Trump over this move, while he also initiated investigations into other countries’ trade practices under another provision of the Trade Act.
The refund process has been described as novel and complex by experts, leading to concerns about technical glitches or processing errors. Katie Hilferty from Morgan Lewis, who oversees the trade practice at the law firm, expressed that she would be pleasantly surprised if refunds were paid quickly but wouldn’t be surprised if there are delays.
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