Washington, D.C. — Court-ordered refunds from the Trump administration’s unlawful tariffs under the International Emergency Economic Powers Act (IEEPA) are doing little to make small businesses and consumers whole after nearly a year of higher costs. Meanwhile, several large corporations are reporting sizable boosts to their bottom lines after receiving tariff refunds, a new Center for American Progress analysis finds.
The nation’s roughly 234,000 identified small-business importers paid an average of $426,000 more in tariffs from March 2025 through August 2026 compared with the preceding 18 months—equivalent to about $24,000 more per month. A total of $166 billion in IEEPA tariffs is slated to be refunded to U.S. importers. CAP estimates that approximately $35 billion of the $115 billion in customs-duty refunds recorded from May through August 2026 may be attributable to small-business importers, equal to an estimated average refund of about $149,000 per importer.
“The Trump administration’s failed trade agenda continues to be a disaster for small businesses and American consumers,” said Ryan Mulholland, senior fellow at CAP and co-author of the analysis. “Small-business importers are not only facing higher costs and continued tariff chaos, but the refunds process has proved challenging and often expensive to navigate. For consumers, who largely paid for the Trump administration’s tariffs in the form of higher prices, it is particularly galling that refunds of the Trump administration’s unlawful IEEPA tariffs are padding the balance sheets of the largest corporations instead of being returned to their pockets.”
The analysis finds:
- Refunds fall far short of the costs small businesses absorbed. Small-business importers paid an estimated $426,000 more in tariffs from March 2025 through August 2026 than during the preceding 18 months. Only the Trump administration’s unlawful IEEPA tariffs are being refunded, while businesses remain subject to tariffs imposed under other authorities. CAP estimates that these refunds amount to an average of about $149,000 per small-business importer, far below the additional tariff costs they faced under the Trump administration’s broader trade policies.
- Small businesses across the country were hit with higher costs. Identified small-business importers in all 50 states and Washington, D.C., faced increased tariff burdens. In 21 states, the estimated additional tariff cost exceeded $200,000 per importer, while Texas, New Jersey, and Kentucky each saw average increases of more than $300,000.
- The refund process itself can impose additional costs. Refunds are not automatic. Importers or their customs brokers must identify eligible entries and navigate federal filing requirements, and some businesses may need attorneys or other professional assistance. For smaller claims, those costs can substantially reduce the value of a refund.
- Consumers who paid higher prices are unlikely to see that money returned. Tariff costs traveled through complex supply chains before reaching consumers, while refunds legally go to importers of record. That makes it difficult, and often impossible, to direct refunded money back to the households that ultimately paid higher prices.
- Large corporations are already reporting major benefits. Target disclosed that it received nearly $1 billion in tariff refunds, while Ross Stores, Polaris, and Carter’s have reported that refunds increased quarterly profits, margins, or earnings per share. Their disclosures emphasized benefits to earnings and shareholders rather than lower prices for customers.
Read the analysis: “Refunds From the Trump Administration’s Unlawful Tariffs Are a Windfall for Corporate America, Not for Small Businesses or Consumers” by Ryan Mulholland, Mimla Wardak, and Kennedy Andara
For more information on this topic or to speak with an expert, please contact Christian Unkenholz at [email protected].