IEEPA tariff refunds pass $120 billion as a third phase opens

What happened

On 20 February 2026 the Supreme Court held, in Learning Resources, Inc. v. Trump (No. 24-1287, decided with Trump v. V.O.S. Selections), that the International Emergency Economic Powers Act (IEEPA) does not authorise the president to impose tariffs. Chief Justice Roberts wrote the opinion; Justices Kavanaugh, Thomas and Alito dissented. The court did not decide how duties already paid should be returned.

The same day, the president signed Proclamation 11012, imposing a 10% import surcharge under Section 122 of the Trade Act of 1974, which allows a surcharge for up to 150 days to address balance-of-payments problems. On 7 May the Court of International Trade ruled in State of Oregon v. United States that the surcharge exceeded the limits of Section 122, IBFD reported. The government appealed, and on 11 June the Court of Appeals for the Federal Circuit stayed the ruling pending appeal, according to a law-firm summary. The surcharge expired at 12:01 a.m. on 24 July, when new Section 301 tariffs on goods from 60 economies took effect, according to Cleary Gottlieb.

Refunds of IEEPA duties run through US Customs and Border Protection's (CBP) Consolidated Administration and Processing of Entries (CAPE) system, which opened on 20 April 2026, Thompson Hine reported. Refunds include interest and go to the importer of record or a party it designates. A third phase, for finally liquidated entries covered by court-ordered reliquidation, opened on 6 October.

Why it matters

The pace has picked up. In a report to the trade court on 26 May 2026, CBP said about $166 billion had been collected under IEEPA, about $85 billion had been accepted into CAPE and $20.6 billion had been sent to the Treasury for payment, according to BDO. In a declaration filed on 15 September, CBP put claims accepted for processing at about $134.7 billion in potential and certified refunds, and said about $122 billion, including interest, had been certified and sent to the Treasury, according to C.H. Robinson and ALS International. The claims covered about 27.2 million import entries.

Because refunds go to the importer of record, the cash returns to the importer of record, not necessarily to the businesses or households further down the chain that paid higher prices. Whether any of it moves further depends on contracts between importers and their customers (inferred).

Who it reaches

Importers of record that paid IEEPA duties (sector). They receive refunds with interest through CAPE. Confidence: reported. Source: CBP figures via BDO and C.H. Robinson.

Importers without banking details on file (sector). About 20,184 refunds worth $1.3 billion were on hold in mid-September because the importer had not supplied ACH bank information. Confidence: reported. Source: CBP figures via C.H. Robinson, 17 September 2026.

Importers with finally liquidated entries (sector). Phase 3 is open only to plaintiffs with a pending trade-court case who have a reliquidation order and gave CBP a valid importer of record number by 30 July 2026. ALS International put the IEEPA duties in finally liquidated entries at about $11.4 billion. Confidence: reported for the rules, estimated for the amount. Sources: C.H. Robinson; ALS International, 24 September 2026.

What would change this view

• The Federal Circuit. Its ruling on the Section 122 appeal is likely to decide whether surcharge payments are also refundable (inferred).
• CBP's next report to the trade court. It will show how much of the roughly $166 billion collected remains unpaid.
• Replacement tariffs. Section 232 and Section 301 actions remain in force. USTR's second four-year review of the China Section 301 tariffs, opened on 6 May 2026 according to its Federal Register notice, is likely the next large decision (inferred).

Sources

1. Learning Resources, Inc. v. Trump, No. 24-1287. Supreme Court of the United States, 20 February 2026. link
2. Proclamation 11012: Imposing a Temporary Import Surcharge. Federal Register, 25 February 2026. link
3. US Trade Court Rules Against Temporary 10% Import Surcharge, Appeal Filed. IBFD, 12 May 2026. link
4. Federal Circuit stays injunctions against Section 122 balance-of-payments tariffs pending appeal. Subject to Inquiry, June 2026. link
5. CBP Confirms April 20, 2026 Launch of Phase 1 of the IEEPA Tariff Refund Process. Thompson Hine, April 2026. link
6. Update on CBP IEEPA Refund Progress. BDO, 5 June 2026. link
7. CBP Reports Major Progress on IEEPA Refunds; CAPE Phase 3 Launches October 6. C.H. Robinson, 17 September 2026. link
8. CAPE Phase 3 Launches October 6: The $11.4 Billion IEEPA Refund Window. ALS International, 24 September 2026. link
9. Initiation of Second Four-Year Review Process. USTR, Federal Register, 6 May 2026. link
10. Trump administration imposes new Section 301 tariffs on 60 trading partners. Cleary Gottlieb, 3 August 2026. link

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