Federal Judge Orders $130 Billion in Tariff Refunds, Denies Delay
The tariffs, enacted since early 2025, generated over $130 billion in revenue, with estimates suggesting total refunds could reach $175 billion. The legal battle began in April 2025 with suits from businesses and states arguing IEEPA misuse.
WASHINGTON – A federal judge ordered the Trump administration Wednesday to begin refunding $130 billion in tariffs invalidated by the Supreme Court, denying a government request for a 90-day delay and asserting sole jurisdiction over the process.
Judge Richard Eaton, a Clinton appointee to the U.S. Court of International Trade, directed U.S. Customs and Border Protection to calculate what importers would have paid without the now-illegal duties imposed under the International Emergency Economic Powers Act (IEEPA). Refunds will include interest, addressing claims from over 1,000 companies that sued in the trade court. The order follows the Supreme Court's February 20, 2026, 6-3 ruling that IEEPA does not authorize presidential tariffs, with Chief Justice John Roberts and Justices Amy Coney Barrett and Neil Gorsuch joining the three liberal justices. Conservative Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented, warning refunds could create a "mess" for the Treasury.
The tariffs, enacted since early 2025, generated over $130 billion in revenue, with estimates suggesting total refunds could reach $175 billion. The legal battle began in April 2025 with suits from businesses and states arguing IEEPA misuse. Key cases included Atmus Filtration v. Trump and state challenges like California v. Trump. The U.S. Court of International Trade ruled against the tariffs in May 2025, upheld by the Federal Circuit in August. The Supreme Court decision struck down broad duties, including 25% on Canadian and Mexican imports and 10% on Chinese goods, but spared those under other authorities like Sections 232 and 301.
The administration has shifted to alternative tools, imposing a 10% global tariff under Section 122 of the Trade Act, set to rise to 15% this week. Government lawyers may appeal Eaton's order or seek a stay, as importers like FedEx pursue full refunds. The ruling reinforces congressional limits on executive trade powers while complicating fiscal planning amid efforts to protect American industries.