Trump Administration Begins Paying $166 Billion in Tariff Refunds to U.S. Importers

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5.7.2026

Quick Facts

Trump administration has begun paying refunds from $166 billion pool after Supreme Court struck down global tariffs
Over 56,000 U.S. importers registered for refunds through new CBP portal, with 82% of payments eligible
Fashion industry could see apparel tariff costs drop from 15% to 8% relative to 2024 production costs

The Trump administration has started distributing tariff refunds to U.S. companies after the Supreme Court declared $166 billion in global tariffs unlawful. Trade lawyers confirmed that clients began receiving payments on May 6, with more scheduled to receive funds starting May 7.

Daniel Cannistra of Crowell & Moring told Bloomberg News that his client received a refund payment including interest. He declined to name the company or specify the amount.

U.S. Customs and Border Protection launched the Consolidated Administration and Processing of Entries (CAPE) portal for companies to submit refund claims. The agency estimates refunds will be issued within 60 to 90 days after approval.

Massive Scale of Refunds

The government collected approximately $166 billion from over 330,000 importers across 53 million shipments. CBP data shows over 56,000 importers had registered for refunds as of April 9, with up to 82% of payments totaling $127 billion eligible in the initial deployment.

Claims covering 1.74 million entries had cleared initial validation steps by the end of April. However, CBP stated the first phase cannot process more than a third of the 53 million import entries affected.

Business Impact

Small businesses face significant relief prospects. Aaron Powell, CEO of Bunch Bikes, expects around $120,000 in refunds after tariffs caused a net loss exceeding $200,000 in 2025. Rick Woldenberg of Learning Resources estimates his company is owed up to $12 million.

The fashion industry, heavily impacted by the tariffs, could see substantial cost reductions. Trump’s tariffs increased the weighted average on apparel and footwear imports to 36% from 13% prior to implementation. Industry analysts estimate replacing the struck-down tariffs will reduce added costs on apparel and leather goods from 15% to 8% relative to 2024 production costs.

Consumer Impact

Companies will receive the refunds, but consumers who paid higher prices will not see direct reimbursement. The Kiel Institute found that 96% of tariff burden passed through to U.S. buyers, with American families paying more than $1,700 each in tariff costs.

Several companies including Lululemon and Fabletics face class action lawsuits from consumers seeking compensation. These companies had publicly cited tariffs to justify price increases.

Legal Background

The Supreme Court ruled 6-3 in February that Trump exceeded his authority when setting import tax rates under the International Emergency Economic Powers Act. More than 3,000 businesses, including FedEx, Costco, and Toyota, had sued the administration seeking refunds.

Trade attorney Lizbeth Levinson noted the refund process is not automatic. Companies must navigate documentation requirements despite CBP’s cooperative approach to the unprecedented refund program.