Court weighs billions in refunds after Supreme Court rejects tariffs

Importers who paid tariffs later ruled unlawful by the Supreme Court were waiting to see whether the government could return the money quickly or force businesses into a long legal slog. The case before Judge Richard Eaton in Manhattan carried billions in real-world stakes: a court filing put illegal tariff collections at about $166 billion, while Customs and Border Protection said nearly $90 billion in first-round refund claims had already been accepted.

The hearing in the Court of International Trade came as CBP tried to show it could unwind the tariff program in an orderly way after the Supreme Court rejected the levies in February 2026. CBP launched its refund process through the ACE Portal and CAPE tool on April 20, 2026, and its guidance said Phase 1 was limited to certain unliquidated entries and certain entries within 80 days of liquidation. The agency said refunds were being paid electronically through Automated Clearing House transfers, except in limited cases.

The harder question was what to do about older, liquidated entries. In normal trade practice, importers pay estimated duties first and liquidation comes later when the final amount is set. CBP has argued it can process those tariffs only in limited circumstances or if importers sue, a position that has fueled concern that many firms will never recover the money without costly individual litigation. Smaller companies have pressed for a class-wide remedy so one order could cover all importers and avoid thousands of separate claims.

That pressure intensified after Judge Eaton issued orders on May 27 requiring CBP to explain its position on refunds for all entries, including the older liquidated ones. The Justice Department has already filed notice that it will appeal the broader refund order, underscoring how the fight could move beyond the trade court and into the Federal Circuit. The government has also said the universal refund theory exceeds the court’s authority when it comes to finally liquidated entries.

CBP told the court on June 4 that $22 billion in refunds had already been completed and sent to the Treasury Department for distribution to importers. Even so, the scale of the remaining claims showed how much work still lay ahead. For companies that paid under a tariff regime now declared unlawful, the hearing was not just about legal doctrine. It was a test of whether the government could reverse trade policy damage efficiently once the politics had moved on.