Big Win: $130B Tariff Refund Ordered
A federal judge has ordered the government to begin refunding roughly $130 billion in tariffs that the Supreme Court recently struck down. The decision springs from the court’s ruling that President Donald Trump lacked authority to impose those duties under the International Emergency Economic Powers Act (IEEPA).
The ruling means millions — and thousands of companies — will watch for checks or credits. The process won’t be quick. U.S. Customs and Border Protection will first have to figure out what importers would have paid without the now-invalid tariffs. Then the refunds follow.
Judge Richard Eaton, an appointee of former President Bill Clinton, laid out the refund process in a short order and made clear he would oversee the claims. “The Chief Judge has indicated that I am the only judge who will hear cases pertaining to the refund of [International Emergency Economic Powers Act] duties,” Eaton wrote. “So there is no danger that another Judge, even one in this Court, will reach any contrary conclusions.”
The legal push came after the Supreme Court tossed the IEEPA basis for the tariffs in a 6-3 decision. Conservative Justice Brett Kavanaugh warned in dissent that refunding the tariffs would be a ‘mess.’ The Trump Administration tried to delay the refunds for 90 days, but the Federal Circuit Court of Appeals denied that request.
Atmus Filtration, Inc. brought one of the key suits after paying tariffs imposed under IEEPA. Big shippers moved too — FedEx filed a refund lawsuit last week. “Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States,” the lawsuit said.
Bottom line: money will flow back, but it’ll take time. CBP will calculate differences, the court will sort claims, and more than 1,000 companies are already in the mix. Expect paperwork, litigation, and political blowback. For businesses that paid those duties, this is a win — but one wrapped in red tape.