A swelling queue of British exporters hoping to recoup money lost to Donald Trump’s now-discredited emergency tariffs may discover that they are entitled to precisely nothing, the audit, tax and business advisory firm Blick Rothenberg has warned.
According to John Havard, a consultant at the firm, roughly 126,000 claims have been lodged through the US Consolidated Administration and Processing of Entries (CAPE) system since it opened for business on 20 April. Yet a sizeable proportion of those applications are expected to be bounced, either because the claimant is not legally eligible or because the paperwork has fallen foul of the portal’s exacting requirements.
“Some UK businesses hoping for compensation may find they are ineligible for it and receive nothing,” Mr Havard said. “A number of small British firms may never have encountered tariffs until President Trump’s second term. They are likely unaware that, although falling sales and higher shipping costs have inflicted significant harm on their finances, legally they are owed nothing by the US Government.”
Who actually owns the tariff bill
The crux of the issue, Mr Havard argues, lies in the small print of international trade contracts. Where British firms shipped goods to American customers on an “ex-works” or “cost and freight” basis, the legal obligation to settle the tariff sat with the US importer rather than the UK seller.
“Reimbursing the US importer for its additional costs does not qualify the UK entity to apply for a tariff refund,” he explained. In other words, even where British exporters voluntarily absorbed the cost to preserve a customer relationship, they cannot now walk into the CAPE system and ask for it back.
It is a hard truth for the cohort of SMEs that scrambled to keep American buyers on side after Mr Trump invoked the International Emergency Economic Powers Act (IEEPA) to slap tariffs on a wide range of imports, measures that were subsequently struck down by the US Supreme Court, opening the door to refund claims in the first place.
A system creaking under the weight of claims
An official status report timed at 7am Eastern on Monday 11 May 2026 indicated that of the 126,000 claims received, roughly 87,000 had been validated. The remainder are sitting in limbo, with many of the rejections traceable to mundane formatting problems in the CSV files uploaded to the portal.
“Rejections may be because the CSV files submitted to the online portal could not be read and processed by the system due to formatting mistakes,” Mr Havard said. “But some rejections will be due to the claimants’ ineligibility for refunds.”
He added that before businesses can even attempt to file, they must hold an account with US Customs and Border Protection’s Automated Commercial Environment. “Anecdotally there has been considerable activity in new account registrations since the Supreme Court ruled the IEEPA tariffs to be unlawful, but this presents another system for businesses to navigate before they can attempt to get refunds.”
A further pitfall is mistaken identity. “Another reason for rejection could be that the person who filed for a tariff refund is not in Government records as the listed importer, or that person’s broker, for the particular tariffs identified in the claim. This could be people trying to game the system, but it is also potentially because individuals do not fully understand who is supposed to make the claim.”
Refunds trickling out – and bank details missing
Despite Washington signalling that no payments would land before 12 May, Mr Havard said there is reliable evidence that some refunds have already been paid out, with at least one claimant receiving interest on top.
But the process is being held up at the final hurdle for nearly 1,900 claimants who have failed to supply bank details. “As at 7am Eastern time on Monday 11 May 2026, there were 1,880 consolidated refunds which could not be passed from the Office of Trade to US Treasury for payment because the claimant had still to provide the necessary bank account details,” Mr Havard said.
Importers whose applications have been rejected can correct errors and resubmit. “However, no amount of resubmission will help if the claim is invalid in the first place – or if they are not getting clear messages from CAPE to explain why they were rejected.”
The next legal front: the 10% global tariff
Even as refunds for the IEEPA tariffs begin to flow, a second courtroom battle is unfolding over Mr Trump’s replacement measure, a blanket 10% “global tariff” introduced under Section 122 of the Trade Act of 1974 after the Supreme Court struck down the original duties.
A coalition of small businesses and roughly two dozen, mostly Democrat-led, states challenged the move at the US Court of International Trade, which ruled by a 2:1 majority on 7 May that the new tariffs were also invalid. The Government has appealed to the US Court of Appeals for the Federal Circuit, which has granted an administrative stay, meaning the 10% levy continues to be collected on US-bound shipments while the legal process plays out.
“Whatever decision the Appeals Court eventually hands down, it seems inevitable that the losing side, as with the IEEPA tariffs, will want to make a further appeal to the US Supreme Court,” Mr Havard said.
The sums at stake are far from trivial. Estimates suggest some $8 billion of Section 122 tariffs were collected in March alone, a substantial slice of the wider tariff burden being shouldered by British exporters, which has weighed heavily on UK trade flows and prompted British factories to cut their exposure to the US market.
For SME exporters watching from this side of the Atlantic, the message from Blick Rothenberg is sobering: those who think a cheque is in the post would do well to check the terms of their export contracts, and the bank details on their CBP account, before they start spending it.
Read more:
Many British exporters chasing US tariff refunds may end up with nothing