Trump admin starts $166 billion tariff refund process for US businesses

The Trump administration on Monday opened the claims portal for U.S. companies seeking tariff refunds after a February Supreme Court decision. U.S. importers are due more than $160 billion, and the new filing system is now the path for getting that cash back. Walmart, Target, Nike, Kohl’s, Gap, and Macy’s are all in line for refund claims tied to those import duties.

U.S. Customs and Border Protection said the CAPE process will happen in stages, with the first coming today. Phase 1 only covers certain unliquidated entries and certain entries within 80 days of liquidation.

CBP said Importers of Record and customs brokers can file a CAPE Declaration through the web-based ACE Secure Data Portal. The filing must be made with a CSV file. Filers will not use the Automated Broker Interface, or ABI, for this step. The CAPE Declaration is a list of entries for which refunds of IEEPA duties are being requested. CBP said it will not ask for other information in that CSV file.

Each CAPE Declaration can include up to 9,999 entries. Importers of Record and brokers can file more than one declaration. CBP said the CAPE Declaration template file will be available through the Upload button in the CAPE tab. The agency also said only the Importer of Record for the listed entries, or the authorized customs broker that filed those entries for that importer, can file the declaration.

Retailers are pissed as lawyers warn the refund cash may take time

CBP said, “Importers and authorized brokers should anticipate that valid IEEPA refunds will generally be issued within 60 – 90 days following acceptance of the CAPE Declaration, unless a compliance concern requires further CBP review.

Entries that are extended, suspended, under review, or placed in warehouses will keep their liquidation status, with validated refunds paid when liquidation happens, according to th CBP.

CBP said these CAPE-processed tariff refunds will still be subject to laws and rules tied to liquidation and reliquidation. That includes netting overpayments and underpayments across the full entry under 19 C.F.R. § 159.1. It also includes the possible diversion of refund money to cover an importer’s legally fixed and undisputed unpaid debts to the United States under 19 C.F.R. § 24.72.

An April 10 note from Citi laid out what some major retailers may get back. Citi said Walmart is due $10.2 billion. Target is due $2.2 billion. Nike could get back $1 billion. Citi also said Kohl’s may recover $550 million, Gap may receive $400 million, and Macy’s may get $320 million.

Citi said these refunds probably will not show up in much forward guidance, but the cash could still give balance sheets a one-time boost. The bank added that the money could also go toward stock buybacks or debt payments.

Citi’s equity researchers wrote, “If refunds are received, we will consider all options in terms of what to do with the cash. We will consider needs of the business, share repurchases, debt paydown, or increasing our cash cushion on the balance sheet.”

Meanwhile, Trump went on Truth to say: “A Country supplying Military Weapons to Iran will be immediately tariffed, on any and all goods sold to the United States of America, 50%, effective immediately. There will be no exclusions or exemptions!”

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