U.S. Customs and Border Protection (CBP) confirmed Tuesday in a filing with the U.S. Court of International Trade that $20.6 billion in tariff refunds, including interest, are actively being disbursed to importers. In the same filing, the agency admitted its previous figure of $35.5 billion in claims being processed was overstated by $10 billion. CBP officials confirmed the error does not affect what importers actually receive; no payment has been altered or delayed as a result.
Why this matters at a glance
$20.6 billion in tariff refunds have reached the final disbursement stage, including principal and interest, as of May 22, 2026.
A data query error inflated the earlier reported figure from ~$25 billion to $35.5 billion. CBP’s Brandon Lord confirmed in the court filing it was an inadvertent mistake, not a processing failure.
The tariff refund program covers 330,000 importers across 53 million import entries, potentially returning up to $166 billion in IEEPA duties ruled illegal by the Supreme Court on February 20, 2026.
All tariff refunds are electronic. Over 4,000 consolidated payments are stuck simply because importers have not set up digital payment capability with the U.S. Treasury.
Calculated from verified figures: the implied average tariff refund per importer is approximately $62,400 ($20.6B ÷ 330,000 importers). This figure does not appear in any other reporting.
Key figures—verified from CBP court filing
| Data point | Figure | Status |
|---|---|---|
| Tariff refunds in final disbursement (incl. interest) | $20.6 billion | Confirmed — May 22, 2026 |
| Previously reported claims being processed | $35.5 billion | Overstated — error admitted |
| Corrected claims being processed | ~$25 billion | Revised figure |
| Total potential + certified refunds accepted in CAPE | ~$85 billion | As of May 22, 2026 |
| Total IEEPA duties paid — full refund pool | Up to $166 billion | Under reprocessing |
| IEEPA entries accepted (Phase 1) | ~16 million | In progress |
| Entries reprocessed without duties — certified | 8.5 million | Certified for repayment |
| Importers affected across all entries | 330,000 | Verified — CBP, Reuters |
| Implied average tariff refund per importer | ~$62,400 | Calculated from verified data |
| Consolidated payments stuck — no digital setup | 4,000+ | Pending importer action |
Also Read: US $166B Tariff Refund Sparks Rally in Avanti Feeds, Gokaldas Exports
The $10 billion error—what happened
Two weeks ago, Brandon Lord, CBP’s executive director of trade programs, told the Court of International Trade that more than $35.5 billion in tariff refund claims were actively being processed. Tuesday’s court filing corrects that to approximately $25 billion. Lord attributed the gap to “an inadvertent error in the data query” used to calculate the earlier figure.
What matters for importers: CBP explicitly confirmed the error “was not a reflection of any error in CAPE processing or refunds.” Every tariff refund that was certified remains certified. No payments were delayed. The $20.6 billion in the disbursement pipeline is unaffected.
The CAPE system — how tariff refunds move
CBP built the Consolidated Administration and Processing of Entries (CAPE) system specifically to handle this refund program, launching it on April 20, 2026, 45 days after receiving court authorization. CAPE operates inside the existing ACE (Automated Commercial Environment) portal that importers already use for trade documentation, allowing bulk CSV uploads rather than entry-by-entry claims.
| Stage | Description | Volume |
|---|---|---|
| 1. Claims submitted via CAPE | Importers file via ACE portal (bulk CSV) | ~$85B accepted (potential + certified) |
| 2. Validation & reprocessing | IEEPA duty codes stripped from entry lines | 16 million entries accepted |
| 3. Certified for repayment | Duty removed, interest calculated, cleared | 8.5 million entries |
| 4. Final disbursement | Sent to Treasury for electronic payment (ACH) | $20.6 billion |
| Bottleneck | No digital payment setup at Treasury | 4,000+ payments held |
Phase 1 eligibility covers unliquidated and recently liquidated entries. The Court of International Trade has indicated all entries, including fully liquidated ones, may ultimately qualify, making Phase 2 an expansion event that could significantly widen the pool of eligible tariff refunds.
The legal foundation—Supreme Court ruling explained
These tariff refunds trace directly to Learning Resources, Inc. v. Trump (No. 24-1287), decided February 20, 2026. In a 6-3 ruling, Chief Justice Roberts held that IEEPA, the International Emergency Economic Powers Act, does not authorize the President to impose tariffs. This was a total invalidation of IEEPA tariff authority, not a partial ruling. Justices Thomas, Kavanaugh, and Alito dissented.
The Court of International Trade then ordered the government to return the collected money. CBP had argued it lacked the technology and manpower to immediately process refunds at this scale, citing an estimated 4.4 million manual man-hours if it had to use existing systems. CAPE was the solution built in 45 days to avoid that bottleneck.
Who is counting on tariff refunds, and how much
Major corporations have already folded expected tariff refund receipts into forward earnings guidance. Under Armour is among the most explicit on record: the company is counting on approximately $70 million in IEEPA tariff refund receipts in its fiscal 2027 outlook, which it says will contribute roughly 150 basis points of gross margin expansion. Strip that out, and Under Armour’s adjusted operating income guidance ($140M–$160M) falls to a range of $70M–$90M, barely above its fiscal 2026 result on a like-for-like basis.
Under Armour: $70 million expected tariff refund, representing ~150 basis points gross margin benefit.
Major carmakers: on record with Reuters as expecting profit boosts from tariff refund receipts (specific figures not publicly disclosed).
German manufacturer ebm-papst is among foreign firms confirmed eligible for tariff refunds; foreign importers who paid the duties qualify, not only U.S.-based companies.
The Penn-Wharton Budget Model estimated total IEEPA tariff receipts at $177–182 billion, meaning the $166 billion CBP figure is potentially a floor, not a ceiling, on total refund exposure.
What the payment bottleneck means, and what to do
More than 4,000 consolidated tariff refund payments are sitting at CBP, unsent to the Treasury Department. The reason has nothing to do with legal disputes or processing backlogs. These importers simply have not enrolled for ACH (electronic) payment through the ACE portal. Since February 6, 2026, CBP has issued all refunds electronically; paper checks are no longer issued.
Log into the ACE Portal and enable the Importer Sub-Account View.
Enter valid U.S. bank information and ensure a current CBP Form 5106 is on file.
Any importer without this setup will remain in the queue regardless of how far their tariff refund claim has progressed.
What to watch — the next trigger
7.5 million IEEPA entries have been accepted in Phase 1 but not yet certified. Each batch certified moves money from the $85 billion accepted pool toward the $20.6 billion disbursement figure.
Phase 2 expansion: the Court of International Trade has signaled fully liquidated entries, currently outside Phase 1 scope, may also qualify for tariff refunds. Phase 2 eligibility rules will be the single most consequential development for the remaining ~$65 billion gap between what’s been accepted and the $166 billion ceiling.
CBP is required to file regular status updates with the Court of International Trade. The next update is the clearest indicator of how fast the pipeline is converting from accepted to disbursed.
Penn-Wharton’s ceiling estimate of $182 billion, $16 billion above CBP’s stated $166 billion, suggests there may be IEEPA duty collections not yet counted in the refund pool. That gap will either narrow or force a revised ceiling in subsequent court filings.
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FAQs
Q1. Does the $20.6 billion in tariff refunds include interest?
Yes. CBP’s Brandon Lord confirmed in the May 27 court filing that the $20.6 billion figure includes both the base duty amount and accrued interest. No breakdown between the two has been disclosed yet. Importers should expect their specific interest calculation to vary by entry date.
Q2. Why are my tariff refunds delayed — and what can I do?
If your refund has not arrived, the most common cause is not having digital payment (ACH) set up in the ACE Portal. Over 4,000 payments are currently held for this reason alone. Enroll via ACE, file a current CBP Form 5106, and confirm your bank details. CBP stopped issuing paper checks on February 6, 2026.
Q3. Which tariffs are NOT covered by the refund program?
Three categories are explicitly excluded from tariff refunds under CAPE: Section 232 duties on steel and aluminum imports, Section 301 duties on goods imported from China, and Section 122 tariffs. Only IEEPA duties, those imposed under the emergency powers act struck down by the Supreme Court in February 2026, are eligible for refund. Check your entry summary lines for HTS Chapter 99 IEEPA codes to confirm eligibility.
All figures in this article are sourced from the CBP court declaration filed May 27, 2026 with the U.S. Court of International Trade, corroborated by Supply Chain Dive, BNN Bloomberg, Reuters, SCOTUSblog, and Lexology. The implied average refund per importer (~$62,400) is an editorial calculation derived from verified government data. This article does not constitute financial, tax, or legal advice. Importers should consult a licensed customs broker or trade attorney regarding their specific eligibility.
