The US government is preparing to launch a new online portal next week that aims to let businesses request refunds for tariffs deemed illegal by the Supreme Court. The primary purpose of this system is to allow businesses to reclaim up to $175 billion in tariffs that were recently ruled illegal by the Supreme Court. This move follows a February 2026 Supreme Court decision that struck down emergency tariffs issued by the Trump administration.
However, the court found the administration had exceeded its authority under the International Emergency Economic Powers Act (IEEPA). ”CAPE will simplify International Emergency Economic Powers Act (IEEPA) duty refund requests made pursuant to court order and in accordance with appropriate statutory authority by providing an electronic pathway to submit valid IEEPA duty refund claims,” CBP states in guidance on its website.”
Key Obstacles
Despite the massive sum owed, experts warned that the process will be far from seamless. Firstly, US Customs and Border Protection (CBP) is placing the full administrative burden on importers. Businesses must proactively opt in and submit valid claims. Refunds are currently limited to unliquidated tariffs or those finalized within the last 80 days. This covers approximately 63% of the disputed duties, leaving the remaining 37% in a legal grey area that could take years to resolve. Valid claims are expected to be paid between 60 to 90 days of approval; however errors in paperwork could cause significant delays.
Conversely, CBP has said it will issue tariffs refund for valid claims within 60 to 90 days of approving them. Manders noted that it’s not uncommon for customs brokers to make mistakes- for example, applying the wrong tariff codes to a given import.
“April 20 is when things are going to start to hit the fan,” Adam Hanover, managing director of restructuring and dispute resolution at CohnReznick Advisory, told CBS News. “I am still not sold that the system is going to work.”
Many importers may find the process of collecting and submitting paperwork for a refund too burdensome, especially since there is no guarantee of when the government will pay them back. To bypass these hurdles, some hedge funds and financial firms are buying refund claims from businesses.
In this regard, Rick Woldenberg, CEO of Learning Resources, estimates his company claims are worth up to $12 million. His business was central to the 2025 Supreme Court case that limited the government’s power to use the IEEPA Act for tariffs. A government portal for refund applications is set to open next week. While Woldenberg plans to apply immediately, he notes that the government should have automatically reimbursed that affected businesses instead of requiring an application.
