The U.S. government has started refunding import duties after the Supreme Court ruled that President Trump lacked the authority to impose widespread tariff increases. However, the process faces uncertainty as the administration announced plans to appeal a federal judge’s order permitting all importers that paid the struck-down tariffs to claim refunds, not just those who filed lawsuits.
U.S. Customs and Border Protection began distributing refunds in mid-May through an online claims system. By late May, it had accepted applications totaling $85 billion, which represents more than half of the estimated $166 billion owed to importers. So far, the Treasury Department issued refunds amounting to over $20 billion.
The administration’s appeal targets a ruling by Judge Richard K. Eaton of the U.S. Court of International Trade, who held that all importers of record are entitled to recover the unlawfully collected tariffs. The government argues that the judge exceeded his authority by extending refunds beyond those who actively sued, and it seeks to limit refunds to companies involved in pending litigation.
Judge Eaton has demanded that the CBP Commissioner, Rodney Scott, explain the timeline for repaying the roughly 330,000 importers eligible for refunds. The Justice Department requested that deputies appear instead of Scott, citing his status as a high-level presidential appointee. Nonetheless, Eaton emphasized that the full amount needs to be refunded, describing it as an unequivocal remedy for unlawful tariff collections.
The dispute centers on tariffs imposed in April 2018, described by Trump as “reciprocal” tariffs, which applied broadly to imports from most countries until the Supreme Court struck them down earlier this year. The refund program had been progressing steadily before the government disclosed its appeal intentions.
Some major retailers have indicated they will pass tariff refunds on to consumers by reducing prices on selected products. Meanwhile, federal officials continue to process refund claims in phases for businesses that had already filed lawsuits to secure reimbursement.