St. Pete-Clearwater Sun

U.S. businesses that paid tariffs later ruled unconstitutional by the Supreme Court can begin applying for refunds today through a new federal online portal — but most everyday consumers are unlikely to see direct reimbursements.

The refund system, administered by U.S. Customs and Border Protection, opened at 8 a.m. Monday, allowing importers and their customs brokers to submit claims through the new portal. Known as CAPE — Consolidated Administration and Processing of Entries — the portal covers roughly $130 billion in tariffs the Supreme Court deemed illegal earlier this year. As of April 14, more than 56,000 importers had registered and were eligible for refunds totaling $127 billion, including interest. If CBP approves a claim, refunds are expected to take 60 to 90 days to be issued.

The Supreme Court ruled in February that Trump’s use of the 1977 International Emergency Economic Powers Act to impose sweeping tariffs on most of the world was unconstitutional, finding that the law did not grant the president authority to tax imports — a power that belongs to Congress.

For small businesses, the stakes are significant. Brad Jackson, co-founder of After Action Cigars in Rochester, Minnesota, said his company paid $34,000 in tariffs last year and absorbed most of the cost rather than passing it on to customers. His main concern now is timing: “A refund process that takes several months to complete doesn’t solve the cash flow problem that it is supposed to fix,” he said.

Consumers who paid higher prices as a result of the tariffs face a murkier path. Because businesses typically paid the customs bills directly, any government refund would go to them — and whether those savings get passed on to shoppers will vary by company. Trade lawyer Robert Shapiro said some businesses will share the savings, while others “will just take it as a gain.”

Individual consumers may have a better chance of refunds through delivery companies like FedEx and UPS, which collected tariffs directly from customers on international shipments. FedEx said it plans to begin filing claims on April 20 and would return refunds to customers once received from CBP.

The Trump administration has until early May to appeal the court order requiring the refund portal, and some importers are also concerned about potential last-minute legal moves that could complicate or delay the process. Meanwhile, the administration is separately seeking to reinstate many of the tariffs through other legal mechanisms, including invoking a 1974 trade law to impose a 15% tariff on most countries.

Several Democratic lawmakers have pushed for direct payments to households, though a logistical hurdle complicates the idea. Tariff revenue flows into the government’s general fund rather than a dedicated account, meaning consumer and business refunds could potentially be counted twice, significantly increasing the cost to the federal government.

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