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A UNITED STATES trade court judge has ordered the federal government to begin issuing billions of dollars in refunds to importers who paid tariffs that were ruled unlawful by the Supreme Court last month.
Reuters, on Thursday, cited Judge Richard Eaton of the US International Trade Court in Manhattan directing the government to finalise entry costs for millions of shipments without imposing the disputed tariffs, effectively triggering repayment to importers.
The judge also stipulated that refunds should include interest.
Under normal procedures, importers pay estimated duties when goods enter the country, with the final amount settled roughly 314 days later in a process known as “liquidation.”
Eaton instructed the US Customs and Border Protection (CBP) agency to complete this process without applying the previously collected tariffs.
“Customs knows how to do it,” Eaton said in court. “They do it every day. They finalise entries and issue refunds.”
The judge scheduled an additional hearing for Friday to review CBP’s progress in implementing the repayment plan.
CBP previously warned in court filings that finalising entry costs without tariffs on this scale is unprecedented and may require manual review of more than 70 million import entries.
The agency had requested up to four months to assess refund options.
Trade attorney Ryan Majerus, a former senior commerce official now with King & Spalding, said the language of Eaton’s order indicates a comprehensive approach, affirming importers’ entitlement to refunds under the International Emergency Economic Powers Act (IEEPA).
The Trump administration’s trade policies had collected over US$130 billion in tariffs subsequently deemed unlawful.
The Supreme Court did not provide guidance on the refund mechanism, leaving uncertainty over how importers would be reimbursed.
Eaton’s order arises from a case filed by Atmus Filtration Technologies, which paid approximately US$11 million in disputed tariffs. Atmus’ lawsuit is one of around 2,000 trade court cases seeking refunds under IEEPA. The judge emphasised that he did not wish to hear each case individually.
“We want to find a method so importers can make claims for duties that were wrongfully imposed,” Eaton said.
More than 300,000 importers, predominantly small businesses, paid the disputed tariffs. Many are hoping for a simple, low-cost refund system, with some indicating they may abandon claims if forced to pursue litigation or navigate complex administrative procedures.
“There should be no obstacles for CBP to issue refunds,” said trade lawyer George Tuttle. - March 5, 2026