US Businesses Begin Receiving Billions in IEEPA Tariff Refunds After Supreme Court Ruling

WASHINGTON — Businesses across the United States began receiving billions of dollars in federal refunds this week for tariffs that were imposed in 2025 and later invalidated by the Supreme Court. The first payments started arriving in company bank accounts as early as Tuesday, May 12, providing a significant cash infusion for importers who paid the duties. The refunds stem from tariffs levied by the previous administration under the International Emergency Economic Powers Act (IEEPA). In a landmark ruling in February 2026, the Supreme Court determined that the administration had exceeded its legal authority in imposing the duties, paving the way for the government to return an estimated $166 billion collected from more than 330,000 importers. For the thousands of small and mid-sized businesses impacted, these refunds represent a critical, if delayed, return of capital. We understand that navigating unexpected import duties can severely disrupt cash flow and operational planning. The arrival of these funds, while welcome, comes after a period of significant financial strain for many importers who were forced to absorb these costs or pass them on to consumers. According to a filing with the U.S. Court of International Trade, U.S. Customs and Border Protection (CBP) had approved nearly 87,000 refund requests as of Monday morning. These approvals cover more than 15 million individual duty payments and amount to $35.5 billion in refunds, a figure that includes interest accrued on the payments. Ryan Peterson, CEO of supply chain firm Flexport, told CBS News that his company's clients alone had received $137 million as of Monday. Small business owners are among the first to see the funds. Sarah Wells, who owns a company that makes accessories for breastfeeding mothers, confirmed to CBS News that she received a $10,000 deposit on Tuesday morning. The payment covers a 20% tariff she paid on a container of goods from China, plus interest. She is expecting an additional $10,000 for tariffs paid on goods imported from Cambodia. "My refund claim had been accepted, and I'd been checking the status feverishly to see if anything was in my bank account," Wells said. To manage the massive reimbursement effort, the federal government launched an online portal on April 20, 2026. The platform, called the Consolidated Administration and Processing of Entries (CAPE), was designed to allow Importers of Record to submit their refund requests directly. However, the rollout has not been without complications. The portal briefly crashed after its debut due to high traffic, and some business owners have reported persistent difficulties. Beth Benike, co-founder of Minnesota-based Busy Baby, is one of many entrepreneurs who has been unable to apply for tens of thousands of dollars in refunds due to ongoing portal access issues and administrative errors. Judge Richard Eaton of the U.S. Court of International Trade, who is overseeing the process, acknowledged these hurdles in a recent filing. While the creation of the CAPE portal was a necessary step, the initial technical problems and ongoing administrative hurdles are familiar pain points for business owners dealing with government agencies. Accurately documenting and filing for these types of complex refunds requires meticulous record-keeping and a deep understanding of customs procedures, which can be overwhelming. This situation highlights the value of proactive financial strategy. For expert guidance on managing cash flow, navigating complex compliance, and ensuring your financial operations are prepared for unforeseen challenges, C&S Finance Group LLC offers outsourced CFO services to help businesses build resilience. Learn more at csfinancegroup.com. The refund process is being conducted in phases. According to CBP, the first phase covers only certain tariff payments made since January 30, 2026, and other pending payments. Guidance for tariffs paid before this period has not yet been released. CBP has estimated that it will take at least 60 to 90 days to deliver refunds once a request is processed. Major logistics carriers are also playing a role. Companies like UPS have stated they will request and retrieve IEEPA tariff refunds from CBP on behalf of customers for whom UPS acted as the Importer of Record. Once the funds are received from the government, these carriers have established their own processes to issue refunds back to the original payors. The economic impact of the tariffs was widespread. A study by the nonpartisan Tax Foundation estimated that the IEEPA tariffs cost the typical American household an additional $700 last year. While businesses are now being reimbursed, it is unlikely that consumers who paid higher prices for goods will receive any direct refunds. With the first wave of payments now being disbursed, attention will turn to the efficiency of the CAPE portal and CBP's ability to process the immense backlog of claims. Businesses still facing technical issues will be watching closely for system improvements, while the entire import community awaits further guidance on the subsequent phases of the refund program for older tariff payments.