Recently, there is a big news in the foreign trade circle: the United States will refund more than 1 trillion yuan in tariffs, and it will officially start on April 20.
For those of us who are engaged in foreign trade, import and export, this is definitely the most real good news this year, bar none.
Many friends are asking: How will this money be refunded, who can receive it, when will it arrive, and can our domestic companies get it?
Today, I will use vernacular to explain this matter from beginning to end, from background to process, from impact to risk, all at once, to ensure that you will feel confident after reading it and will not miss this money.
Let’s make the core facts clear first: The money to be refunded this time is the global tariffs imposed in accordance with the International Emergency Economic Powers Act (IEEPA) after the Trump administration came to power in 2025. The total amount is approximately US$166 billion, equivalent to RMB 1.13 trillion.
On February 20 this year, the U.S. Supreme Court ruled with a 6:3 vote that the Trump administration’s behavior of bypassing Congress and directly imposing tariffs by executive order was ultra vires and illegal.
On March 4, the U.S. Court of International Trade further ruled that the U.S. Customs and Border Protection (CBP) must refund the tax to approximately 330,000 importers, with interest.
This is not hearsay, it is a legal judgment that has taken effect. It is not refundable or non-refundable, it must be refunded, in full, with interest.
You may ask: Why are there such large-scale refunds?
To put it simply: the legal basis for the U.S. government’s taxation that year was completely rejected by the court.
The International Emergency Economic Powers Act was originally enacted in 1977 and was specifically used for real national emergencies (such as wars and major crises). However, the Trump administration used it to impose global tariffs and solve trade deficits, completely exceeding the scope of legal authorization.
Therefore, the court directly ruled that these tariffs are legally “illegal collection” and must be returned in full.
Let’s talk about the key timeline for refunds: The U.S. Customs has made it clear that on April 20, Eastern Time (that is, next Monday), the specialized electronic refund system CAPE will be officially launched.
This is the largest tariff refund action in U.S. history, involving more than 53 million customs declaration records and covering 330,000 U.S. import companies.
As of April 9, 56,000 importers have completed registration for the electronic refund process, involving an amount of approximately US$127 billion (approximately RMB 866 billion).
The remaining companies are also rushing to register. After all, this is a real money repayment that no one wants to miss.
The next question that everyone is most concerned about is: who can receive the money?
Can our domestic companies take it directly?
First of all, make it clear: the direct object of the refund is the registered importer in the United States (that is, the company registered with the U.S. Customs and responsible for customs duties).
To put it simply, they are buyers, importers, and purchasers in the United States, not our domestic exporters, factories, and suppliers.
Therefore, Chinese companies cannot apply directly to US Customs for refunds.
But this does not mean that we have no benefits, as we will discuss in detail later.
The scope of the refund is also clearly limited: only tariffs levied according to IEEPA between January 2025 and February 23, 2026.
Note that not all U.S. tariffs on China will be refunded. For example, the familiar “Section 301” tariffs and “Section 232” steel and aluminum tariffs are not within the scope of this refund.
This time, only those global tariffs imposed using emergency powers that were ruled illegal by the Supreme Court will be withdrawn.
Then how to apply, what is the process, and how long does it take to get the money?
The US Customs has specially developed the CAPE electronic refund system, which is embedded in the existing ACE (Automated Commercial Environment) platform.
The application steps are simple:
- US importers must first register an account in the ACE system and bind a bank account for receiving electronic refunds.
- Upload the list of customs declaration numbers (CSV format), and the system will automatically check the customs declaration records that meet the conditions.
- After the system is approved, the refund will be directly transferred electronically with interest.
- Processing cycle: Official estimate is 45-90 days.
Currently, two types of customs declarations are prioritized in the first phase: first, documents that have not yet been finally cleared, and second, documents that have been cleared but are still within the 80-day adjustable window, which account for 63% of the total affected.
The remaining complex business (such as multi-batch, multi-year, controversial) will be dealt with in subsequent stages.
Now the point is: What impact will this incident have on our domestic foreign trade companies, factories, and suppliers?
Although we cannot receive money directly, the impact is real and affects the entire chain. I will break it down for you below:
First, the cost of American buyers has dropped significantly, orders are more stable, and they are more willing to place orders.
After the American importer got the refund, his cash flow immediately improved and his financial pressure was instantly relieved.
Previously, many U.S. companies were afraid to place large orders, stock up, or even reduce purchases because of additional tariffs.
Now that the money is back, they have the confidence to place larger and more stable orders. Our domestic factories and suppliers will naturally place more and more stable orders.
Second, the bargaining space becomes larger, and we can get better prices and more relaxed payment terms.
The cost for American buyers has dropped, the profit margin has increased, and they will no longer insist on lowering prices during negotiations.
In the past, many companies were forced to cut profits or even take orders at a loss in order to get orders. Now with the buffer of refunds, American buyers are more willing to accept reasonable offers, and are even willing to give us longer account terms and more relaxed payment methods.
Thirdly, the industry as a whole is recovering and market confidence has rebounded.
This refund covers multiple categories such as electronics, clothing, furniture, daily consumer goods, home furnishings, and textiles, which almost overlap with our main domestic export categories.
The cost pressure, financial pressure and operating pressure of the entire industry will be significantly alleviated, and everyone will have more confidence and confidence in doing business.
Fourth, it directly benefits our capital turnover.
U.S. buyers get their money back faster and more timely, which reduces the pressure on our domestic companies’ accounts receivable and makes their cash flow healthier.
What many small and medium-sized foreign trade companies and factories are most afraid of is payment delays, arrears, and broken capital chains from American buyers. Now that refunds are available, American buyers can pay more quickly and on time.
But we must also be objective: not all companies can benefit, nor are they without risks.
First, only qualified U.S. importers can receive it.
Not all US companies have paid this illegal tariff. Only companies that imported between 2025 and February 2026 and paid tariffs according to IEEPA are eligible.
Secondly, there are thresholds for application and the process must be compliant.
U.S. Customs requirements must be submitted by the registered importer himself or an authorized customs broker. The information must be accurate and the customs declaration form must be complete.
If the information is incomplete, the information is wrong, or the window period is exceeded, you may not be able to get a refund.
Third, the refund cycle is not short and it does not arrive immediately.
Officials say 45-90 days, but it may actually be longer, especially for small and medium-sized enterprises and companies with incomplete information.
Fourth, the Trump administration may be tossing.
After the Supreme Court’s ruling, Trump publicly expressed “deep disappointment” and even said that he wanted a retrial and a new ruling.
Although the law has come into effect, it cannot be ruled out that there will be repeated iterations, disputes, and delays in the future.
Fifth, our domestic enterprises cannot take it directly, but can only benefit indirectly.
Don’t expect U.S. Customs to send the money directly to us. It must be transmitted through U.S. importers.
Let’s talk about what our domestic companies can and should do now:
- Hurry up and communicate with your American buyers: confirm whether they meet the refund conditions, whether they have registered, when they can get the money, and whether they will adjust the order, price, and payment terms after getting the money.
- Check your order and customs declaration records: Look at the orders, customs declaration forms, and tax payment vouchers from 2025 to February 2026 to confirm whether they are within the scope of the refund.
- Prepare information in advance: If American buyers need it, we can cooperate to provide customs declarations, invoices, contracts, logistics vouchers, etc. to help them apply for refunds smoothly.
- Be cautious and don’t be blindly optimistic: Although it is a big benefit, it will not go directly to our account after all. Don’t blindly expand production, blindly accept orders, and blindly advance funds just because of this news.
- Pay attention to follow-up progress: After the system is launched on April 20, there will be more details, more companies will complete applications, and more refunds will be received. Continue to track the latest developments.
Finally, there is a deeper meaning behind this incident: this is a judicial check and balance on administrative power, and it is also a clarification of trade rules and legal boundaries.
The ruling of the U.S. Supreme Court essentially tells everyone: The government must have a clear legal basis for imposing taxes and tariffs, must go through legal procedures, and cannot arbitrarily exceed its authority.
This is an important signal for global trade and foreign trade companies in all countries: trade rules, legal bottom lines, and procedural justice are insurmountable.
For those of us engaged in foreign trade, the biggest revelation from this incident is that compliance, legality, and rules are always the stablest, safest, and most sustainable path.
Whether it is importers in the United States or our domestic exporters and factories, only by operating within the legal framework, operating in compliance, paying taxes legally, and standardizing customs declarations can we truly enjoy policy dividends, avoid risks, and make our business stable, large, and long-term.
To summarize: The United States will refund more than 1 trillion yuan of illegal tariffs, which will be officially launched on April 20. This is the most significant financial benefit for the foreign trade industry this year.
Although our domestic companies cannot receive money directly, more stable orders, better price negotiations, faster payment collection, and industry recovery are all real benefits.
What we have to do now is: communicate with American buyers, sort out information, stay cautious, continue to pay attention, and operate in compliance.
