When the Supreme Court invalidated Donald Trump's tariffs, many importers braced for years of red tape before seeing any money back. The reality has been far more encouraging.
An estimated 330,000 importers paid more than $166 billion in tariff fees under the International Emergency Economic Powers Act. The federal government has now opened a refund process that, despite its complexity, is actually functioning.
The effort began in late April, and early reports from customs brokers handling the claims suggest the machinery is working better than expected. Melissa Alvarado Quisenberry, vice president at Michigan-based Supply Chain Solutions, which helps businesses navigate freight, customs, and shipping logistics, has been fielding refund requests from clients. "It appears to be more organized and operational than many of us expected," she said.
The catch: you cannot simply apply for your tariff money yourself. Federal rules require that your original customs broker, designated as the "importer of record," must file the claim. This restriction likely reflects lessons learned from the pandemic-era Employee Retention Tax Credit program, which was flooded with fraudulent claims from service providers once the IRS loosened oversight.
For businesses unhappy with their broker, the rule creates a real problem. Switching brokers to access refunds is not practical. "You can work with another broker in a consulting capacity, but your options for now are limited," Quisenberry explained.
Assuming your broker relationship is solid, they file electronically through the customs agency's ACE Secure Data Portal. The first phase focuses on shipments finalized within the past 80 days, though some unfinal shipments are also being processed. Brokers submit a Consolidated Administration and Processing for Entries Declaration digital file listing eligible shipments.
Some technical hiccups have surfaced, but Quisenberry reports that the system is running "pretty well" overall. Most importers should expect between 60 and 90 days to receive funds, she said. Service providers like hers charge fees for managing the refund application, though many business owners consider the cost reasonable given the recovery.
One complication that trips up business owners is the tax treatment. Importers who deducted tariffs paid in 2025 will owe taxes on refunds received in 2026. That obligation needs to be factored into 2026 tax planning.
Major carriers are stepping up. FedEx, UPS, and DHL have pledged to return tariff refunds to their customers. Small business owners shipping through these companies should monitor whether those commitments translate into actual rebates. Notably, Amazon, Apple, Costco, and other large retailers have remained silent on whether they will pass refunds along to their suppliers or customers.
The refund process defied the skepticism many held after the court ruling. Navigating the paperwork requires work and patience, but the system is delivering results. For businesses willing to engage with their brokers and follow the filing requirements, Washington's bureaucracy has, unexpectedly, become an ally.
Author James Rodriguez: "The refund machine works, but only if you know how to feed it properly."
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