How quickly are companies likely to receive refunds?

The CAPE refund portal opened on Monday, April 19, 2026 and eligible Importers of Record must have an established ACE Portal account to apply for a refund. Once the application has been received and accepted, applicants can expect refunds within 60 to 90 days. These refunds will include interest accrued on refunded payments.

What to know about audits and taxes:

It is reasonable to expect that CBP will audit each CAPE submission thoroughly and look for any inconsistencies between an IOR’s application and the data that the CPB has on hand. Material inconsistencies will likely result in the application being rejected. It is also reasonable to expect that any refund received will be considered business revenue by the IRS and will therefore be appropriately taxed.

Do small businesses that don’t qualify for a refund have any recourse to get reimbursed?

Small businesses should be aware of the windfall that some of their suppliers are likely to receive from these tariff reimbursements. To the extent that the costs of tariffs were passed on to small business purchasers of their products, it is reasonable to for these businesses to ask for price concessions on future purchases as compensation for their loyalty and sacrifice. The same argument could also be made by consumers who in turn purchased goods at elevated prices from the small businesses who purchased them from importers.

What does this mean for future tariffs?

The Supreme Court ruled that IEEPA did not give the Executive Branch power to impose tariff policy in this manner. However, given President Trump’s commitment to maintain the use of tariffs as a point of leverage in his negotiations with foreign countries, and his willingness to reach for novel interpretations of existing trade law, it seems unlikely that he will abandon tariffs as an economic strategy. Section 122 of the Trade Act of 1974 allows for tariffs of up to 15% to be imposed for up to 150 days to correct “fundamental international payment problems.” This gives the President the ability to continue using tariffs and provides leverage in future trade negotiations. Section 301 of the Act would likely take longer to implement as it requires trade investigations which take time, but these tariffs would not be restricted to a 150-day time limit, making them more durable and sustaining. We believe that the President remains as committed to his tariff strategy today as he was when he entered office, and that small businesses are unlikely to see a significant drop in tariff rates during the Trump Administration without an act of Congress that defies the President’s wishes.

How will this impact pricing going forward?

We do not expect those receiving refunds to reduce prices materially once refunds arrive for several reasons. First, the refunds will likely be paid in a lump sum and will not be attributable to any specific transaction or relationship. Refund recipients are likely to treat the money as a one-time windfall which can be used to either reinvest in the business, or dividend out of the company for personal use. Second, tariffs on most imported products continue under other trade policies, and with consumers now used to paying higher prices for imported goods, we expect these new tariffs to be passed on to borrowers just as the now overturned tariffs were.