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American businesses could begin receiving billions of dollars in tariff refunds this week as federal officials activate a new streamlined system to repay companies hit by now-invalid Trump administration tariffs.

The refunds stem from duties imposed under the International Emergency Economic Powers Act (IEEPA), which the Supreme Court ruled in February exceeded presidential authority. U.S. Customs and Border Protection (CBP) is now rolling out the Consolidated Administration and Processing of Entries (CAPE) system to handle the massive repayment process more efficiently.

Major Payouts Incoming

CBP has already calculated $35.46 billion in finalized refunds and interest covering 8.3 million shipments, with the total potentially reaching as high as $166 billion. Major retailers including Home Depot, Nike, Target, and Walmart are among those expected to receive significant reimbursements.

Instead of processing refunds shipment by shipment, the new CAPE system consolidates eligible refunds — including interest — into single payments for each importer. Valid claims are expected to be paid within 60 to 90 days in most cases.

This represents one of the largest government refund operations in recent memory — essentially the U.S. Treasury returning billions of dollars that companies paid under tariffs later deemed unlawful. While businesses stand to recover substantial sums, consumers who absorbed higher prices during the tariff period are unlikely to see direct refunds.

Some companies, such as Costco and FedEx, have indicated they may pass along savings to customers, but trade experts warn widespread price cuts are improbable in the short term. Many businesses absorbed tariff costs over the past year and may simply use the refunds to offset losses rather than lower prices.

Adding to the uncertainty, the original IEEPA tariffs may be gone, but new tariffs imposed under different authorities remain in effect, and more could be coming later this year.

For importers and retailers, this cash infusion arrives at a critical time. For American consumers hoping for relief at the checkout line, the impact may prove far more limited than the headline refund numbers suggest.