The US Treasury is watching money flow out the door faster than it can collect it. A landmark Supreme Court decision earlier this year struck down tariffs imposed under the International Emergency Economic Powers Act, and now the bill has come due, with refunds to importers creating a net cash drain that new tariff revenue simply cannot match.
The ruling that broke the dam
On February 20, 2026, the Supreme Court ruled 6-3 that IEEPA does not actually authorize the imposition of tariffs, invalidating the legal foundation for a massive chunk of Trump-era trade duties.
Roughly $166 billion in IEEPA tariffs had been collected from importers. Those importers now want their money back, and the courts say they’re entitled to it.
Customs and Border Protection launched its new Consolidated Administration and Processing of Entries system, known as CAPE, in early May to handle the refund wave. As of June 2026, more than $95 billion has been queued for processing through the system, with over $23 billion already transmitted to the Treasury for disbursement.
