Companies across the nation have begun receiving money back from tariffs that the U.S. Supreme Court determined President Donald Trump did not have constitutional power to impose on imports from nearly all other nations.
However, this refund process may come to a stop after the Trump administration announced Friday its intention to challenge a federal judge’s decision that expanded eligibility for refunds to all businesses that paid the invalidated duties, rather than limiting it to companies that pursued legal action.
Before the Department of Justice notified the court of its appeal plans, the refund program managed by U.S. Customs and Border Protection had been operating relatively smoothly. The first successful claimants received their money on May 12, approximately three weeks after importers and their customs brokers began submitting requests through an online portal, CBP reported.
As of May 22, refund requests totaling $85 billion had been accepted for review – representing more than half of the $166 billion that the agency calculated the government owes to businesses that paid tariffs on imported merchandise, according to a CBP court document filed this week. The agency stated it had already instructed the Treasury Department to distribute $20.6 billion in refunds.
The administration disclosed its appeal intentions while challenging a request by Judge Richard K. Eaton for CBP Commissioner Rodney Scott to testify before the U.S. Court of International Trade regarding timelines for repaying all 330,000 importers who could qualify for refunds. The judge has set a June 9 hearing to consider why he should not order the government to take all necessary steps to accelerate the process.
Justice Department attorneys requested that Eaton permit one or two of Scott’s subordinates to testify instead, contending that as a senior presidential appointee, the CBP leader could not be forced to give court testimony. They also maintained that Eaton overstepped his authority in March when he ruled that the Supreme Court’s decision granted “all importers of record” the right to refunds.
“For that reason, defendants intend to appeal the court’s universal injunction,” the attorneys stated, noting that CBP would continue moving “as quicky as it can to process refunds in a phased approach” for companies that filed approximately 485 ongoing trade court cases to claim their refund rights.
In a brief response Friday, Eaton stated he required direct testimony from Scott about whether the government would return all funds collected from when Trump implemented what he termed “reciprocal” tariffs on most nations in April 2025 until the Supreme Court invalidated them in late February.
“This case involves $166 billion,” the judge stated. “It is undisputed that the remedy for this unlawful collection is for the United States government to refund the unlawfully collected duties.”
Several major retail chains indicated they would use their tariff refunds to reduce prices for customers on certain products. Walmart Chief Financial Officer John David Rainey informed analysts last week that the company would cut prices despite the maximum refund it could receive representing less than half of 1% of Walmart’s $483 billion in annual U.S. revenue.
Various smaller businesses told The Associated Press that the partial refunds they have received would help pay remaining or future tariffs, reduce debt, or simply maintain operations after more than a year of uncertainty and additional import expenses.
Jay Foreman, CEO of toy company Basic Fun, reported receiving approximately $450,000, representing 7% of his total claim, during two consecutive days this month. While he viewed the initial payment positively, he described the process as a “total slow roll” after receiving less than $10,000 since then.
“It’s time to release the funds back into the economy, especially given how much we and others need these funds to support our businesses and fund our operations,” Foreman said.
