The US’ Customs and Border Protection (CBP) agency will on Monday (20 April) launch its system for processing refunds of tariffs found to have been implemented by the White House illegally.
Today’s Day in Trade brings you this latest development in the ongoing US tariffs saga, alongside updates on the repercussions of the Iran war for the UK economy, the impact of new EU steel tariffs on UK exports, and news regarding carbon border adjustment mechanisms (CBAMs) in both the UK and EU.
CAPE of tariff hope
CBP is launching the Consolidated Administration and Processing of Entries (CAPE) system on Monday for processing business requests for refunds of ‘reciprocal tariffs’ imposed illegally by the Trump administration last year.
These duties were introduced using the International Emergency Economic Powers Act (IEEPA) in April 2025. The US Supreme Court ruled in February 2026 that this was an excessive and inappropriate use of this legislation by the executive branch of US government.
The process for businesses to claim refunds for IEEPA duties paid since April 2025 has been a topic of intense speculation, due to the sheer number of requests that are likely to be made. Reuters reports that the value of these refunds could end up being as much as US$166bn, with 56,497 US importers having already applied for them as of 9 April.
CBP said in a court filing on Tuesday (14 April) that the development of the initial phase of CAPE had been completed, with importers set to receive a single consolidated payment for refunds rather than on an entry-by-entry basis. Interest will be applied where applicable.
CBP said the system, which will be rolled out in phases, will initially be able to process refund requests for recent imports and straightforward entries. John Havard, a consultant at tax consultancy firm Blick Rothenburg, said that CAPE is expected to be able to deal with “around 63% of refund requests in its first phase”.
“However, no time frame has been offered for processing the remaining 37% of tariffs,” he added.
Hedge funds to capitalise on tariff refund admin hassle?
Blick Rothenburg also explains that only the importer of record, or their US customs broker, will be able to make the refund request.
“As refunds will only be paid electronically, whoever submits a refund claim must already have an account set up with CBP’s Automated Commercial Environment. Anecdotal evidence is that there has been considerable activity in new account registrations since the Supreme Court ruled IEEPA tariffs to be unlawful.
“This suggests a surge in administrative activity as businesses respond to the opportunity but also raises the risk of delays for those not yet fully set up within the system.”
Hedge funds are reportedly looking to capitalise on this administrative burden by offering businesses cash-in-hand now for their potential, future refunds.
“Firms are on track to receive refunds directly, but it’s unclear how long it will take them to get their money back from the Trump administration,” Politico reports.
“And so funds have swooped in to give firms a percentage of the cash they’re owed today in exchange for the full value of the refund when the government pays out.”
EU to double steel tariffs
The EU is going ahead with plans to double tariffs and halve quotas on steel imports this summer, following a meeting of EU lawmakers and members states on Monday.
Country allocations have not yet been determined. While European Economic Area (EEA) countries will not be subject to the increased tariff rates, the UK is set to be hit.
UK Steel, the British industry body, told the Guardian it was “crucial that the UK and EU reach a sensible agreement regarding access to each other’s quota systems”.
The UK recently announced that it would also double tariffs on non-quota steel imports, in a bid to curb cheap Chinese imports from flooding its market.
CBAM updates
European parliamentarians are looking to block the European Commission’s (EC) plans to give itself powers to exempt certain sectors from EU CBAM, Politico reports.
At the end of last year, the EC proposed adding an amendment (Article 27a) to CBAM legislation that would allow it to remove goods from carbon levies under unspecified “unforeseen circumstances”. The proposal frustrated manufacturers for creating unnecessary uncertainty.
Mohammed Chahim, a Dutch MEP from the Socialists and Democrats group, has released proposed amendments to CBAM rules, including the removal of the EC’s proposed amendment.
“Regulatory stability is crucial to attract investment for the clean transition, and the newly introduced Article 27a risks undermining the CBAM’s resilience and predictability, as it could allow scope exclusions to become the target of sector specific interests,” Chahim said.
The UK is continuing to develop legislation for its own CBAM, which is due to be implemented from the start of next year. Last week, the government launched a technical consultation on the draft CBAM Emissions and Verification Regulations, which closes on 21 May.
“The aim is to gather feedback from stakeholders on the drafting of the secondary legislation to ensure that they deliver the policy correctly and effectively for the tax to operate as intended and provide for administrative matters,” HMRC said.
Reeves to meet Bessent amid Iran crisis
UK chancellor Rachel Reeves is set to meet US Treasury Secretary Scott Bessent at the International Monetary Fund’s (IMF) spring meeting today, and the economic repercussions of the crisis in the Middle East will be the major talking point.
Speaking to the BBC ahead of the meeting, Bessent claimed that the “small bit of economic pain” will be worthwhile in the long run, as the US-Israeli military campaign will guarantee greater security for Western economies.
"I wonder what the hit to global GDP would be if a nuclear weapon hit London... I am saying that I am less concerned about short-term forecasts, for long-term security."
The Strait of Hormuz, through which 20% of the world’s energy exports transit, remains “commercially closed following the escalation to a US naval blockade”, Crane Worldwide Logistics said yesterday in an email update, adding:
“More than 3,200 vessels, including over 800 tankers, remain stranded across the Gulf, with charter and insurance markets re‑hardening sharply and all ceasefire‑era relief erased.”
Prime minister Sir Keir Starmer hosted the first ‘Middle East response committee’ meeting yesterday to organise the UK’s diplomatic and economic response, Politico reports.
One potential positive outcome from the crisis, that the chancellor is reported to be pushing for, is the return of Gulf expats to Britain.
“Reeves will use a visit to Washington this week to try to mend the relationship with internationally mobile professionals, which frayed when the Labour government’s tax changes drove many overseas,” according to the FT.
Also in the trade news today
- From Friday 31 July 2026, businesses will no longer be able to process F680 Form applications on SPIRE, our defence and export controls director has told us
- Read this Notice to Exporters from the Export Control Joint Unit for more information
- Fuel price protests have spread from Ireland to Northern Ireland, the FT reports
- A group of Labour MPs is proposing a Swiss-style deal with the EU and a review of US relations in a bid to tackle right-wing populism, the Guardian reports
Yesterday in trade
- New data indicated a slowdown in Chinese exports
- But China looks set to enter pivotal US trade talks with the upper hand due its control of critical minerals
- Hungary’s new centre-right PM Péter Magyar suggested he will back EU financial support for Ukraine
- You can read yesterday’s trade news here.
