Tariff Refunds Update: System To Issue $166 Billion Set To Launch
Customs officials have said the first phase of their new system for automatically processing and distributing refunds on President Donald Trump’s now defunct tariffs could go live as early as next week.
In a filing with the U.S. Court of International Trade on Tuesday, Customs and Border Protection’s executive director of trade policy and programs, Brandon Lord, said the agency had “completed the primary development of all components and functionalities” for the Consolidated Administration and Processing of Entries (CAPE) system.
Newsweek has contacted CBP for comment via email outside regular working hours for further comment.
Why It Matters
Customs officials estimate that the government owes about $166 billion in tariff payments to about 330,000 importers, after the Supreme Court struck down Trump’s emergency duties in February. Since the 6-3 decision, businesses and trade associations have been pushing the government to swiftly reimburse the levies they paid over the previous year, with many importers filing lawsuits against CBP to this end.
Trump said the legal side of the issue could be dragged out over years, though the CBP’s recent filings indicate that refunds could reach importers within weeks. However, economists have warned that any delays could create additional costs for the government, given the interest compounding on the amount owed to those who paid the tariffs.
What To Know
In early March, the Court of International Trade ordered the agency to immediately begin issuing refunds but paused this directive after CBP said it lacked the staff and systems capacity to do so.
Lord said processing refunds would require 4.4 million man-hours to complete manually and requested a 45-day delay to implement its new automatic system needed to comply with the order.
On Tuesday, however, Lord said the agency had now “transitioned to an intensive testing posture,” focused on simulating refunds disbursement and fixing any defects discovered in the new CAPE system.
CBP estimates that different elements of the system are now between 85 and 95 percent complete, and it is still targeting a “Phase 1” launch date of April 20. Lord said over 56,000 importers had signed up to receive refunds and that the system would be capable of processing these for about 82 percent of tariff entries, representing about $127 billion in deposits.
The agency said previously, however, that it may take up to 45 days for these payments to be processed and sent out.
What Happens Next
Lord said certain tariff payments-representing about $2.9 billion in deposits-would not be able to go through the new automated process, requiring a “manual refund process … to be repeated for each entry individually, dramatically increasing the workload and diverting personnel from fully carrying out the agency’s commercial trade operations and trade enforcement mission.”
While businesses may soon see payments on the emergency tariffs refunded, a recent CNBC poll of chief financial officers found that none intend to pass the rebates on to consumers, despite many having indirectly paid for these in the form of higher prices.
Newsweek's reporters and editors used Martyn, our Al assistant, to help produce this story. Learn more about Martyn.
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This story was originally published April 15, 2026 at 7:58 AM.