A federal court is considering whether the U.S. government should accelerate and expand tariff refunds after the Supreme Court struck down key Trump-era duties. The dispute could determine how billions of dollars are repaid and whether many importers must pursue separate legal claims.
The latest phase of the case centers on refund eligibility rather than the legality of the tariffs themselves. While refunds are already being processed for some businesses, the administration is arguing that broader repayments should not automatically extend to every company that paid the now-invalid duties.
The issue returned to the spotlight on June 9 during a hearing before the U.S. Court of International Trade, where Judge Richard Eaton examined the government’s refund process and questioned whether additional action may be needed to ensure repayment.
According to the Associated Press, the case involves tariffs that were invalidated by the Supreme Court in a February 20, 2026 ruling. The Court found that the administration exceeded its authority by using the International Emergency Economic Powers Act to impose broad import tariffs.
Dispute Focuses on Who Can Receive Refunds
The Trump administration is seeking to limit the scope of repayments, despite ongoing efforts to process claims. According to reports, government lawyers argue that many refunds cannot be issued unless courts specifically order repayment for individual companies.
Judge Eaton had previously ordered Customs and Border Protection (CBP) to create a system allowing all affected importers to seek refunds. The administration has appealed that order, contending that the court exceeded its authority by requiring universal repayment.
During Tuesday’s hearing, Eaton questioned CBP officials about the agency’s progress and timeline. According to the Associated Press, CBP has already accepted refund claims totaling approximately $90 billion and directed the Treasury Department to issue $23 billion in repayments.
The agency launched an online refund system in April and initially focused on importers whose tariff obligations had not yet been finalized or had been settled within the previous 80 days. Susan Thomas, CBP’s executive assistant commissioner for trade, told the court that the agency was developing a process to address older claims and expected that work to be completed by the end of July.
At the same time, the administration maintains that broader repayment obligations remain subject to appeal. The question of whether all importers are entitled to relief is now before the U.S. Court of Appeals for the Federal Circuit.
Billions of Dollars and Thousands of Companies Remain Affected
The financial stakes remain substantial. Court filings cited by multiple reports estimate that the government collected roughly $166 billion under the tariffs that were later invalidated. Some estimates reported by CNBC place potential liability even higher, depending on how refunds are ultimately applied. More than 330,000 importers could potentially be affected. Major companies including Walmart, Apple, Costco, and General Motors have pursued claims, while many other businesses are considering legal action.
POLITICO reported that more than $85 billion in refund claims had already been approved by late May. Still, significant disagreements remain over claims tied to older tariff payments and companies that were not parties to the original lawsuits.
Some importers are preparing additional legal strategies if broad refunds are restricted. During Tuesday’s hearing, attorneys representing companies involved in the case suggested that a class-action approach could provide relief for thousands of similarly situated importers.
Judge Eaton did not issue a ruling during the hearing. He indicated that he would continue evaluating whether CBP should be required to move more quickly or expand access to the refund process while the broader appeals battle continues.
