Tariff Update: Companies Are Entitled to Refunds
Recent court rulings offer affected businesses a recovery path of duties collected
On March 3, 2026, a federal judge on the U.S. Court of International Trade ruled that companies that paid tariffs levied through the International Emergency Economic Powers Act (IEEPA) during the current administration—which were later invalidated by a February 20 decision from the U.S. Supreme Court—are legally entitled to refunds.
Topline Takeaways:
- A federal appeals court declined to pause the Supreme Court’s ruling that struck down most of the Trump administration’s tariffs issued under the IEEPA. The decision allows the Court of International Trade to begin the process of issuing tariff refunds to affected businesses.
- Judge Richard Eaton of the Court of International Trade in New York stated that U.S. importers are “entitled to benefit” from the Supreme Court’s February ruling, which determined that President Trump did not have the authority to impose sweeping tariffs last year under the IEEPA.
- Trade experts estimate that the U.S. government could owe businesses as much as $166 billion in refunds.
- This week, Brandon Lord, executive director of the trade policy department at U.S. Customs and Border Protection, submitted a court filing outlining a four-step process for issuing refunds to companies.
- The refund process will be managed through the Consolidated Administration and Processing of Entries (CAPE) portal. The government expects the system to be operational within 45 days, meaning companies could begin receiving refunds as early as this summer.
- The President is also exercising investigatory authority under Section 301 of the Trade Act of 1974, which could enable the administration to implement new tariffs to replace the duties set to expire later this summer.
- U.S. Senators Tim Kaine (D-VA) and Raphael Warnock (D-GA) introduced the Reclaim Trade Powers Act, legislation aimed at ending the administration’s broad 10 percent tariffs on most goods by repealing Section 122.
Taken together, these developments mark a major turning point in the tariff fight—offering affected businesses a path to recover billions in unlawfully collected duties while signaling that the administration’s trade strategy remains far from settled. As companies prepare to pursue refunds through the CAPE system, lawmakers and the White House are already shaping the next phase of the debate through potential replacement tariffs and new legislation. For importers, manufacturers, and the broader travel and transportation economy, the coming months will be defined by both financial recovery and continued uncertainty over the future of U.S. trade policy.
