IEEPA Tariff Refunds Are Now Underway: What U.S. Importers Need to Know

The U.S. government began issuing the first wave of IEEPA tariff refunds on May 12, 2026, following the Supreme Court's February ruling that struck down President Trump's use of the International Emergency Economic Powers Act to impose import taxes. For e-commerce businesses and importers that absorbed these costs over the past year, the refund process is now live and, by most accounts, working better than many expected.

How the Refund Process Came About

According to Government Executive, the Supreme Court's 6-3 decision found that Trump's steep global tariffs exceeded his presidential powers. Following the ruling, U.S. Court of International Trade Judge Richard Eaton ordered the government to stop charging the tariffs and establish a refund system. Customs officials estimate 330,000 importers paid the duties.

As TariffsTool breaks down, all IEEPA reciprocal tariffs imposed between April 2025 and February 2026 are eligible for refund, including the 10% baseline rate and every country-specific rate above it, covering Vietnam at 46%, Cambodia at 49%, Thailand at 36%, Taiwan at 32%, South Korea at 25%, and the EU at 20%. The total amount owed back to importers sits at an estimated $166 billion, with statutory interest accruing on top.

How the CAPE System Works

CBP launched its refund tool, called the Consolidated Administration and Processing of Entries (CAPE), on April 20, 2026. The system allows importers and their customs brokers to upload a CSV file listing every eligible entry through CBP's ACE Secure Data Portal.

There is a critical rule importers need to understand: only the original importer of record can file. Melissa Alvarado Quisenberry, a vice-president at Michigan-based Supply Chain Solutions, told The Guardian that being forced to use your original customs broker can create problems if your business is unhappy with that firm. “You can work with another broker in a consulting capacity, but your options for now are limited,” she said.

As UPS explains on its website, Phase One of the CAPE process covers refund requests for certain unliquidated entries and certain entries within 80 days of liquidation, meaning only certain tariff payments made starting January 30, 2026, in addition to pending tariff payments, are eligible under this phase. CBP says it will take at least 60 to 90 days to deliver the requested refunds.

To receive funds electronically, importers must enroll in Automated Clearinghouse (ACH) Refund through the ACE Portal before funds are disbursed.

Is the System Actually Working?

Despite early skepticism, practitioners on the ground say the refund process is functioning. Quisenberry said the process “appears to be more organized and operational than many of us expected,” and that things have been working “pretty well” overall, with some minor glitches reported in the early days.

CBS News reports that CBP accepted roughly 21% of IEEPA duty refund requests, with 3% already in the refund stage of the process. The numbers reflect a system still in its early phases, but the trajectory has been steady.

Not everyone has had a smooth experience. Some importers said they were unable to access their Customs importer accounts and waited on hold for hours trying to resolve administrative errors. Beth Benike, co-founder of Busy Baby, a Minnesota-based maker of baby accessories, is among the small businesses that have not yet been able to apply for tens of thousands of dollars in refunds due to portal access issues. These friction points are most acute for smaller operators without dedicated customs teams.

What the Major Shippers Are Doing

As Supply Chain Dive reports, FedEx, UPS, and DHL have all filed claims for tariff refunds with CBP and pledged to return money to customers who shouldered added tariff costs. “Our intent is straightforward: if refunds are issued to FedEx, we will issue refunds for IEEPA tariffs paid to the shippers and consumers who originally bore those charges,” FedEx said on its website.

Fortune reported that UPS CEO Carol Tome said the company is submitting approximately $5 billion of reimbursement requests through the CAPE tool. “We think it's going to take some time before the Treasury remits money to us, but as soon as we get that money, we're going to remit it right back to our customers,” she said.

DHL Express said it will automatically file refund claims for eligible entries and, like FedEx and UPS, will return the refunds CBP issues to the party that originally paid the duties. For businesses that shipped through any of these three carriers, no action is needed on your end. Amazon, Apple, and other large brands have not yet confirmed whether they will pass refunds on to customers. Moneywise notes that the average American family paid more than $1,700 in tariff costs, according to the U.S. Congress Joint Economic Committee, though only businesses can submit compensation requests through CAPE.

The Hidden Tax Consequence

One cost that businesses are overlooking is the tax treatment of refunds received. Many importers that paid tariffs in 2025 took a legitimate tax deduction for those costs. Tariff refunds received in 2026 are taxable income, and that needs to factor into your estimated tax planning for this year. Talk to your accountant before assuming the full refund amount flows straight to your bottom line.

Political Pressure and Legal Risk

President Trump posted to Truth Social on April 22, writing: “Handing over 159 Billion Dollars in Tariff refunds to people who have been Ripping Off our Country for years, is unexplainable.” He also said he would “remember” companies that chose not to request refunds, adding pressure on some businesses to weigh political risk against financial recovery.

As Sidley Austin noted in its legal analysis of the refund process, the government's deadline to appeal the Court of International Trade's nationwide refund order runs through early June 2026, and a successful appeal could result in a stay of the refund process and significantly delay payments. This is not a settled situation, and businesses should monitor developments closely as that deadline approaches.

Steps to Take Now

If your business imported goods subject to IEEPA tariffs between April 2025 and February 2026, contact your original customs broker immediately to confirm they are filing on your behalf. Confirm your ACH enrollment is active so funds reach your account electronically. The U.S. Chamber of Commerce's step-by-step guide for small businesses navigating the CAPE system is a useful starting point. Consult your accountant to account for the tax implications before you bank on the full refund amount.