U.S. Begins Refunds for Tariffs Ruled Unlawful

The Trump administration has begun processing refunds tied to tariffs that the U.S. Supreme Court ruled unlawful earlier this year, opening a new channel that could ease costs for importers of whisky and other spirits brought into the United States.

U.S. Customs and Border Protection said on Monday that it had launched the Consolidated Administration and Processing of Entries platform, known as Cape, to handle claims for refunds on tariffs imposed in 2025 under the International Emergency Economic Powers Act. The government said the system will allow importers and customs brokers to submit requests for reimbursement on duties that totaled about $166 billion.

The refunds follow a March order from the U.S. Court of International Trade directing customs officials to return more than $160 billion collected by the federal government. The court said the tariffs introduced by President Donald Trump under IEEPA were unlawful, setting up a process that now moves into the claims stage.

Under the new system, approved refund requests are expected to be paid in one lump sum within 60 to 90 days. It was not immediately clear whether consumers who paid higher prices indirectly because of the tariffs will receive any compensation.

For spirits companies, the move could matter quickly. Importers of Scotch whisky, Irish whiskey, tequila and other distilled spirits have faced higher landed costs since the tariffs took effect, squeezing margins at a time when demand in some categories has already been uneven. In February, industry data showed Scotch whisky exports to the U.S. fell 15% in 2025, a decline that trade groups linked in part to tariff pressure and broader uncertainty around trade policy.

Small business groups have argued that the refund process should be broad enough to help companies that absorbed the duties or passed them along through higher prices. A coalition called We Pay the Tariffs said on LinkedIn that the portal marked “a major moment” because it began “the process of returning US$166 billion in duties that were ruled unlawful earlier this year.”

The group also warned that businesses remain exposed if new tariffs replace those now being unwound. That concern is especially acute for beverage importers, distributors and hospitality operators that depend on stable pricing to plan purchases months ahead.

The refund process comes as spirits companies continue to navigate a volatile trade environment. Tariffs can affect not only import costs but also shelf prices, promotional spending and inventory decisions across bars, restaurants and retail chains. For producers abroad, especially in Scotland and Ireland, access to the U.S. market remains critical, making any relief from duties closely watched by exporters and their American partners.

Customs officials have not said how many claims they expect or how quickly they will be able to clear them. For now, importers and brokers are being directed to use Cape to file requests tied to the unlawful IEEPA tariffs, with reimbursement dependent on approval by federal authorities.