The current situation surrounding US tariff restitutions presents a complex challenge for the Dominican Republic. While a new US Customs and Border Protection (CBP) system has launched to return billions in “unconstitutional” tariffs, the political cost of claiming those funds has become a central issue for importers and trade partners.
The new system for requesting refunds of tariffs imposed by President Donald Trump went into effect on Monday, 20 April 2026 in the United States, with expected refunds that could reach US$166 billion for US businesses. According to a court filing released on Tuesday, 15 April, US Customs and Border Protection reported that it has completed the initial phase of the refund system, called CAPE. The tool will allow for the consolidation of refunds, ensuring that importers receive a single electronic payment, with interest where applicable, instead of separate amounts for each import transaction.
Regardless, it is a situation that is being given a nuance of restitution vs retaliation. As of 21 April 2026, the US government has officially opened the Consolidated Administration and Processing of Entries (CAPE) portal to refund approximately US$166 billion in tariffs. This follows a February 2026 Supreme Court ruling that found the use of the International Emergency Economic Powers Act (IEEPA) to impose broad “reciprocal” tariffs was an unconstitutional overreach of executive power.
The CAPE system is being phased in for refunds. Phase 1 (launched 20 April 2026) is restricted to unliquidated entries and entries liquidated within the last 90 days. Liquidated entries from earlier in 2025 will be handled in subsequent phases.
However, the restitutions come with a heavy warning. On 21 April 2026, during an interview on CNBC’s Squawk Box, the US President stated he would “remember” companies and trade partners that choose to seek these refunds. He described those who decline the money as “brilliant” and “honorable,” suggesting that claiming the restitution would be viewed as an antagonistic move against his administration’s trade policy.
The Dominican Republic participated in multiple talks with Trump administration officials seeking the removal of the tariffs, arguing the DR has a free trade agreement with the US. Since private companies (the Importers of Record) paid the tariffs, the checks from the US Treasury will be written to private companies, not the Dominican state.
Meanwhile, the specific “reciprocal” tariffs Dominican exports were paying under the IEEPA are gone as per the US Supreme Court ruling, yet a new 10% tariff was implemented immediately to replace them. The good news is that many Dominican goods are likely to be exempt from it.
Here is the breakdown of how the current ruling and the new executive actions affect Dominican exports as of 21 April 2026:
The IEEPA Tariffs (struck down)
The Supreme Court ruling on 20 February 2026 officially declared that the President did not have the authority under the International Emergency Economic Powers Act (IEEPA) to impose those broad tariffs.
Collection halted: As of 24 February 2026, the US Customs and Border Protection (CBP) stopped collecting these specific duties.
Refunds: Companies can now use the CAPE portal (launched on 20 April 2026) to claim back what was paid irregularly over the last year.
The new 10% “Section 122” Surcharge (the replacement)
To bypass the court ruling, the US administration immediately invoked Section 122 of the Trade Act of 1974. This is a different legal “tool” that allows a temporary 10% global import surcharge for up to 150 days to address “international payments problems.” This new 10% tariff for Dominican exports went into effect on 24 February 2026 and is scheduled to remain until 24 July 2026. Yet, Section 122 allows for a one-time extension by President Trump for another 150 days if the “international payments problem” persists.
The Presidential Proclamation for the new Section 122 tariff includes specific exemptions that protect the core of Dominican trade:
• CAFTA-DR Textiles: Textile and apparel goods that qualify for duty-free treatment under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) are specifically exempted from this new 10% surcharge.
• Pharmaceuticals: Medical devices or pharmaceutical ingredients (a major DR export sector) are also largely exempt under the “Annex I” list of essential goods.
• Agricultural products: Certain “non-sensitive” agricultural items like tomatoes and beef have also been granted exceptions to prevent US grocery price spikes.
Read more:
Diario Libre
USA Today
CNBC
BBC
Aljazeera
22 April 2026