Over $160 billion in illegal tariffs will be refunded by the US government. Automotive firms, suppliers, and dealers will all benefit from the tariff refunds. More than 330,000 US importers paid tariffs on 53 million shipments of goods. The tariff fallout that’s been hanging over the auto industry is about to reverse course, at least in part. The automotive industry, like so many others, has been hit with billions of dollars in tariffs under the Trump administration, driving price increases across the market. Now, after courts ruled the President lacked the authority to impose them in the first place, a system to issue refunds will open next week. President Trump long maintained that tariffs function as a tax on foreign countries, not importers or consumers. With US Customs and Border Protection preparing to roll out its new Consolidated Administration and Processing of Entries (CAPE) system, that claim is quietly being undercut, as importers will now be refunded for tariffs they paid. The administration will also be required to return those funds with interest. Read: The US Made $200 Billion From Trump’s Tariffs. Guess Who Paid 96%? The first phase of the refund program, starting on April 20, will be for unliquidated entries and certain entries within ~80 days of liquidation that need funds fast. Other phases will refund the rest of the companies that paid the tariffs. Applicants will need to submit proof of all the ‘International Emergency Economic Powers Act (IEEPA) tariffs that they paid. It’s understood that most refunds will be issued within 60-90 days of the application being accepted. Importers Are Getting Paid A total of $166 billion in tariffs was unlawfully imposed through the IEEPA. And of this, roughly $127 billion worth is expected to be refunded during the first phase of the program. Approximately 56,497 importers have already completed the process to receive their refunds. Court documents tied to ongoing lawsuits in the Court of International Trade show that more than 330,000 importers paid these tariffs across 53 million shipments of imported goods. The refunds should deliver a meaningful cashflow boost for automotive suppliers and retailers. They may also give dealers room to reinvest in inventory and bring some stability back to pricing strategies that have been under pressure for years.