return to news
  1. US trade court orders refunds for Trump's illegal tariffs: How much money could importers get back?

Business News

US trade court orders refunds for Trump's illegal tariffs: How much money could importers get back?

Upstox

2 min read | Updated on March 05, 2026, 12:12 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

The judge directed US Customs and Border Protection to finalise import entries as if the tariffs had never existed, which would automatically trigger refunds with interest for affected companies.

US Trump tariff refund

The Supreme Court had earlier ruled in a 6–3 decision that the president lacked authority to impose sweeping tariffs without explicit approval from Congress. Image: Shutterstock

A US trade court judge on Wednesday directed the federal government to begin refunding billions of dollars in tariffs paid by importers after the Supreme Court ruled last month that the duties had been imposed illegally under President Donald Trump.

Open FREE Demat Account within minutes!
Join now

Richard Eaton of the US Court of International Trade ordered authorities to begin the process of finalising import entries without applying the disputed tariffs, a step that would automatically trigger refunds with interest for companies that paid them.

Eaton said the refund process should not be difficult for US Customs and Border Protection, which routinely recalculates duties and returns excess payments to importers once shipments are formally assessed.

“Customs knows how to do this,” Eaton said during the hearing, noting the agency regularly liquidates entries and issues refunds when importers have overpaid.

When goods enter the United States, companies pay estimated duties that are later finalised in a process known as “liquidation,” typically around 10 months after entry.

Eaton instructed CBP to complete those calculations as if the tariffs had never been imposed, clearing the way for reimbursements.

The judge also scheduled another hearing for Friday to review the government’s plan for carrying out the refunds.

In a 6–3 ruling, the Supreme Court last month said the president lacked authority to impose sweeping tariffs without explicit approval from Congress.

Writing for the majority, Chief Justice John Roberts said the administration had claimed “extraordinary power” to impose tariffs of unlimited scope without clear legislative authorisation.

The duties generated more than $130 billion for the US government and were a central element of Trump’s trade agenda.

The court’s decision invalidated those tariffs but did not spell out how companies should be reimbursed.

The issue surfaced in a lawsuit brought by Atmus Filtration Technologies, which told the court it had paid about $11 million under the tariffs.

Atmus’ case is one of roughly 2,000 lawsuits filed at the trade court seeking refunds tied to the IEEPA tariffs.

CBP has warned the court that implementing refunds could be a massive undertaking, potentially requiring the review of more than 70 million import entries. The agency previously said it might need up to four months to determine how to handle the payments.

More than 300,000 importers paid the tariffs, most of them smaller businesses. Many have said they hope customs authorities adopt a streamlined refund system rather than forcing companies to pursue individual claims.

Volatile markets?
Ride the trend with smart tools.
promotion image

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

Next Story