U.S. Customs Refunds $35B in Trump Tariffs; Walmart Gets $10B

U.S. Customs and Border Protection (CBP) said on May 12 it has processed $35.46 billion in tariff refunds, including interest, with payments already deposited into importers' bank accounts — marking the largest customs reimbursement operation in American history.

The refunds stem from tariffs imposed under the Trump administration that federal courts have ruled unlawful, including so-called 'reciprocal tariffs' and fentanyl-related import levies.

Scale of the Refund Operation

In a declaration filed with the U.S. Court of International Trade, CBP official Brandon Lord said that as of 7 a.m. on May 11, the agency had received 126,237 tariff refund applications, of which 86,874 had been verified. Those verified claims cover 15.1 million individual import entries eligible for reimbursement.

Of those, 8.3 million shipments have been fully processed, with refund amounts — including interest — calculated and disbursed. CBP said approximately 15% of submitted claims were rejected, typically due to incorrect information or the inclusion of ineligible goods.

The full scope of the refund program is considerably larger: CBP is ultimately required to refund duties paid by roughly 330,000 importers across more than 53 million import entries, with total estimated payouts of approximately $166 billion including interest — the bulk of which relates to tariffs on Chinese goods.

Major Retailers and Automakers in Line for Billions

A Citibank analysis published last month estimated that Walmart stands to receive approximately $10 billion in refunds, followed by Target at $2 billion and Nike at $1 billion. Department store chain Macy's is expected to recover $320 million. Large automakers such as General Motors could receive hundreds of millions of dollars.

Multiple importers confirmed they had already received funds in their bank accounts.

Can Chinese Exporters Recover Refunds?

The refunds flow directly to the Importer of Record (IOR) — the legal taxpaying entity listed on U.S. customs declarations — under the principle that refunds go to whoever originally paid the duties.

Chinese exporters may have a path to recovery depending on their trade structure:

• Those with U.S. subsidiaries acting as importers can apply directly.

• Exporters operating under DDP (Delivered Duty Paid) terms, who bore customs and tax obligations, may apply as the IOR, provided contract terms clearly reflect this.

• Exporters who shipped under FOB or CIF terms — the most common Chinese export arrangement — did not directly pay U.S. duties, but many absorbed tariff costs through price reductions or discounts. These exporters may negotiate with U.S. buyers to share refunds or apply benefits to future orders.

• In 'dual-clearance, duties-included' arrangements where a freight forwarder or logistics firm is the IOR, Chinese exporters can only seek a share of refunds through negotiation with that third party.

• Separately, UPS, FedEx, and DHL have stated they will directly refund customers for parcels affected by IEEPA-related tariffs.

Consumers Unlikely to See Direct Relief

While American consumers bore much of the tariff burden through higher prices — the nonpartisan Tax Foundation estimated IEEPA tariffs alone cost the average U.S. household $700 in 2025 — they are not eligible for direct refunds under the program.

Companies receiving refunds have indicated the funds will primarily be used to pay down debt, rehire workers, replenish inventory, or reduce product prices. Analysts do not expect retailers to issue direct reimbursements to past shoppers.

How to Apply: The CAPE System

CBP's refund portal — known as the CAPE (Customs Automated Processing Engine) system — went live on April 20. Importers must submit a 'CAPE Declaration' through CBP's ACE (Automated Commercial Environment) online portal, providing bank account details for direct deposit.

Processing is structured in phases:

• Phase 1 (covering an estimated 63% of total refunds) prioritizes unliquidated entries and those liquidated within the past 80 days.

• Later phases will address more complex cases, including entries liquidated more than 80 days ago, anti-dumping and countervailing duty cases, and bonded warehouse transactions.

Legal Battle Over Remaining Tariffs Continues

The refund program comes amid continuing legal uncertainty over Trump's broader tariff regime. After the U.S. Supreme Court struck down Trump's tariffs as unlawful earlier this year, the administration imposed a 10% global baseline tariff on imports from all countries.

On May 7, the U.S. Court of International Trade ruled that 10% global tariff illegal — but the ruling applied narrowly to two small companies and the state of Washington, the plaintiffs in that case, and did not issue a universal injunction.

The Trump administration immediately appealed. On May 12, a U.S. appeals court stayed the lower court's ruling, allowing the 10% global tariff to remain in effect while the legal challenge proceeds.