International Emergency Economic Powers Act (IEEPA) Tariff Refunds: Protecting Your Right to Recovery
The Opportunity — and the Risk
On February 20, 2026, the United States Supreme Court struck down the tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA), ruling in Learning Resources Inc. v. Trump that IEEPA does not authorize the President to impose these tariffs. The decision invalidates the sweeping tariff regime that began in early 2025 — including the tariffs on goods from Canada, Mexico, and China and the reciprocal tariffs imposed on imports from virtually every country in the world. Estimates of total IEEPA tariffs collected range as high as $175 billion.
The U.S. government has launched the Consolidated Administration and Processing of Entries (CAPE) system — an administrative portal through which importers of record can begin filing refund claims with U.S. Customs and Border Protection (CBP). While the opening of CAPE is a significant step, it does not resolve the many legal and practical questions that will determine who ultimately recovers, how much, and when.
For businesses that bore the cost of these tariffs — whether as importers of record or as companies further along the supply chain that paid tariff costs through their commercial arrangements — the stakes are significant and the landscape is evolving rapidly.
Who Is Affected
The IEEPA tariffs touched virtually every sector and geography. If your business imported goods into the United States, you may have borne tariff costs that are now subject to refund. This includes, but is not limited to:
Importers of Record. Companies that directly imported goods into the United States and paid IEEPA tariffs to CBP may be eligible to recover those amounts through the CAPE administrative process or other proceedings. However, the CAPE system is new, its procedures are still developing, and key questions — including eligibility criteria across different phases and the treatment of liquidated versus unliquidated entries — remain unresolved.
Shippers, Purchasers, and Other Supply Chain Participants. Many businesses that are not the importer of record nonetheless bore the economic burden of the IEEPA tariffs. If your company paid tariff costs to an importer, customs broker, freight forwarder, or other intermediary — whether directly or through pricing adjustments — your right to recover those amounts may depend on the specific contractual and commercial arrangements in place, as well as on whether the importer of record passes through any refund it receives. If the party that receives a government refund does not return it to the business that actually paid the cost, additional legal avenues may be available.
How We Can Help
Hausfeld is advising businesses globally on their rights in connection with the IEEPA tariff refunds. The questions facing each company are fact-specific: who holds the importer-of-record status for relevant entries, who bore the economic cost, what the contractual arrangements provide, and whether refunds will be passed through to the parties entitled to them.
We work with clients to assess their status, develop a strategy tailored to their circumstances, and act to protect their interests as this process unfolds. We encourage any business that may have been affected to contact us for an initial discussion.
With offices in the United States, the United Kingdom, and across Europe, Hausfeld is well-positioned to advise clients wherever they are located on the implications of these developments for their business.
Frequently Asked Questions
What were the IEEPA tariffs? Beginning in February 2025, President Trump imposed a series of tariffs on imported goods under the International Emergency Economic Powers Act. These tariffs applied to goods from nearly every country and imposed additional duties ranging from 10% to significantly higher rates depending on the country of origin. On February 20, 2026, the U.S. Supreme Court held that IEEPA does not grant the President authority to impose tariffs, rendering these duties unlawful.
What is the CAPE system? CAPE — the Consolidated Administration and Processing of Entries — is the administrative portal created by U.S. Customs and Border Protection to process refund claims from importers who paid IEEPA tariffs. Phase 1 of CAPE launched in April 20, 2026 and is limited to certain categories of entries. Additional phases are expected to follow, though the timing and scope remain uncertain.
Who is eligible to file a CAPE claim? Under Phase 1, the CAPE portal is available to the importer of record. Businesses that are not the importer of record cannot file CAPE claims directly with CBP. This is one of the most significant issues in the current refund landscape: the party that paid the economic cost of the tariff may not be the party eligible to receive the government's refund through CAPE.
My company is not the importer of record but we paid tariff costs. What are our options? This is a question Hausfeld is actively working on with clients. If your business paid tariff costs — you may have contractual or legal rights to recover those amounts. In some cases, it may be appropriate to seek assurances from the importer of record that any government refund will be passed through. In other cases, if a refund is received but not passed on, additional legal action may be necessary. The specific facts and commercial arrangements will determine the best approach, which is why an individualized assessment is important.
How much are the refunds? Refund amounts depend on the specific tariffs paid, the entries involved, and the phase of the CAPE process. CBP has estimated total IEEPA tariffs collected at approximately $166 billion across more than 330,000 importers and 53 million shipments. Individual refund amounts will vary significantly based on the volume and value of a company's imports during the relevant period.
Is the refund process settled? No. The CAPE process is new and continues to evolve. There are unresolved questions about eligibility across different phases, the treatment of entries that have already been liquidated, the timeline for payments (CBP has indicated 60 to 90 days after approval), the potential for errors or rejections in the filing process, and the possibility of further legal challenges. The government's approach to refunds has shifted multiple times since the Supreme Court's ruling, and further changes are possible.
Does my company need to take action now? It is important for any business that may have been affected by the IEEPA tariffs to understand its position promptly. For importers of record, the CAPE process is underway and there are practical and procedural steps that should be taken to preserve rights and ensure eligibility. For businesses that are not the importer of record, it may be equally important to act early — including reviewing supply chain contracts, identifying which entities hold the importer-of-record status for relevant entries, and communicating with trading partners about the treatment of any refunds. Delay can affect both legal rights and practical leverage.
I am based outside the United States. Does this affect my company? Yes, potentially. Many non-U.S. companies — including European manufacturers, distributors, and trading companies — shipped goods into the United States that were subject to IEEPA tariffs. Whether your company is the importer of record or bore the tariff cost through an importer or intermediary, you may have rights that require attention.