A US Supreme Court ruling earlier this year declared the levies unlawful. Now the administration has launched a new system called CAPE. This means Trump forced to refund tariffs amounting to $166 billion to American importers. US Customs and Border Protection introduced the system to streamline the complex refund process. Instead of entry-by-entry claims, businesses can receive consolidated electronic payments. Fox News first reported the development.

The refund process will move relatively quickly. Reed Smith partner Michael Lowell said the system acts as a fast-track mechanism. Refunds should process within 60 to 90 days after submission. If companies file early, payments could begin flowing between mid-June and mid-July. The February ruling struck down the tariffs entirely. This sets up one of the largest repayment efforts in US history. Trump forced to refund tariffs that his administration proudly championed.

The rollout marks only the first phase of the effort. Not all importers or tariff categories will qualify immediately. Businesses will now rush to file claims to recover billions paid under the now-invalid duties. Tariff revenues had surged to record highs following the so-called “Liberation Day” duties. Tariffs function as a tax on imports. US companies typically absorb the initial cost and pass it on through higher prices. Consumers ultimately pay more for everything from electronics to raw materials.

Despite the ruling, experts say tariffs will remain a core part of US trade policy. But this particular chapter just closed with a $166 billion bill.