We’ve been fielding a number of calls from clients asking whether they’re entitled to tariff refunds following the Supreme Court’s February 2026 ruling that invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The short answer: if you’re an importer who paid these tariffs since January 2025, you likely qualify for a refund through the CBP’s new CAPE portal system—and the clock is ticking. While importers of record are the primary beneficiaries, some retailers may also be entitled to recovery if the importer specifically passed the tariff costs through to them via surcharges or explicit pricing terms documented in purchase agreements.
The stakes are significant. CBP has reported that 330,000 importers paid approximately $166 billion in IEEPA tariffs, with roughly $120 billion in duties covered by importers who had enrolled for electronic refund processing by late March (around $127 billion by April 2026). What’s particularly interesting is that before the Supreme Court even ruled, investors and lawyers were buying rights to these tariff refund claims for pennies on the dollar—as low as 20 cents before the decision (note that the type of claim also impacts its valuation). After the ruling, those same claims surged to as high as 60 cents on the dollar, reflecting increased confidence in recovery. This secondary market activity underscores both the uncertainty businesses face and the real value these refunds represent.
How to Apply and What to Expect
Importers should act quickly to review tariffs paid since January 1, 2025, and register for refunds through the CBP’s CAPE system, particularly for Phase 1 claims covering unliquidated entries and entries liquidated within the last 80 days. You’ll need to ensure your ACH banking details are properly set up in the ACE portal—refunds will be issued electronically, and CBP won’t process payments until this is complete. Working with your customs broker to identify eligible entries and gather supporting documentation is essential, as refunds may be processed within 60-90 days once approved.
Tax implications
From a tax perspective, the refund treatment depends on how you handled the original tariff payment. If the tariff reduced your reported income as a deductible expense, the refund is generally taxable under the tax benefit rule. However, if you passed the tariff cost directly to retailers without affecting your tax liability, the refund would be non-taxable to you as the importer. For businesses still holding tariffed inventory, the refund adjusts the tax basis of those goods rather than creating an immediate taxable event. Given the complexity of these rules and the potential for interest income on refunds, we recommend consulting with our team to properly plan for the tax impact and ensure you’re maximizing your recovery while staying compliant.
Link Forbes – What Small Businesses Should Know About Tariff Refunds
Link CFO – Tax considerations CFOs need to factor into tariff refund planning
Link NPR – The market for tariff refunds
