Tariff Refund System Trips Up Many Businesses Right Away

When the government opened a new online system to refund certain tariff payments, it immediately turned away thousands of businesses. Within days of the portal’s launch, about 15 percent of claims were denied. More than 75, 000 requests poured in, but only 47, 000 were accepted as valid. That leaves many companies frustrated after spending time and money preparing their paperwork. The system, called CAPE, only accepts claims that fit very specific rules. Many rejections happen because businesses file under the wrong category or outside the allowed timeframe.The rules are strict for a reason. The refund program only covers tariffs that were finalized or could still be calculated when the system went live. It also only applies to payments made under one legal authority from the Trump years—the International Emergency Economic Powers Act. Claims based on other rules or later tariffs simply don’t qualify and get rejected automatically. Some business owners might be learning the hard way that not every tariff is eligible. Despite the early problems, officials say the system is working as designed. A brief pause on the first day helped fix minor delays, but users mostly reported smooth operation afterward. The government moved quickly to create the portal after a Supreme Court ruling removed certain tariffs. With thousands of claims streaming in, the speed of the rollout surprised many observers. A legal expert called the development “amazing” given the tight deadline and high volume of filings.