Canadian exporters are expected to recover approximately US$10 billion in tariffs collected under U.S. President Donald Trump’s emergency tariff regime after the U.S. Supreme Court ruled the levies imposed under the International Emergency Economic Powers Act (IEEPA) were illegal.
The United States collected more than US$160 billion in gross tariff revenue under the IEEPA before the court’s decision. The ruling triggered a large-scale refund process for importers who paid the duties.
The U.S. Customs and Border Protection (CBP) has launched a new Consolidated Administration and Processing of Entries (CAPE) system to process refund claims. According to international trade lawyer Carrie Owens, a former CBP director, refunds are already being issued for eligible importers.
Owens said the CAPE system now handles most import entries, including standard commercial shipments and warehouse withdrawal entries, allowing U.S. importers of record to apply for refunds of tariffs that were improperly collected.
However, not all claims are being processed automatically. Older import transactions that have already been fully liquidated remain tied up in ongoing legal proceedings.
Under U.S. customs rules, import entries are generally liquidated around 314 days after filing. Importers have 80 days after liquidation to seek refunds through the CAPE system. After that period, they must file a formal protest within 180 days. Once that deadline passes, entries become “finally liquidated,” making recovery more legally complex.
Owens said she has been impressed by how quickly CBP implemented the new refund system but noted that litigation continues over older claims that fall outside the automated refund process.
The refunds represent a significant financial recovery for Canadian exporters affected by the now-invalid tariffs, even as Canada and the United States continue to face new trade tensions under separate U.S. tariff measures.
