Full Breakdown
Trump Administration to Appeal Judge’s Order for Nationwide Tariff Refunds
5/31/2026, 4:47:07 AM
Legal Background: Supreme Court Ruling and Judge Eaton’s Injunction
In February, the U.S. Supreme Court ruled 6-3 that President Donald Trump’s use of the International Emergency Economic Powers Act to impose sweeping global tariffs was unconstitutional. The decision left the refund question to the U.S. Court of International Trade, where Judge Richard K. Eaton ordered Customs and Border Protection (CBP) to recalculate and refund duties for all importers of record, not only those who had filed lawsuits.
Scale of the Refund Process
CBP’s online portal, launched April 20, has already accepted refund applications totaling $85 billion, more than half of the $166 billion the agency estimates the government owes. As of May 22, CBP directed the Treasury to issue $20.6 billion in refunds. The agency expects up to 330,000 importers to be eligible, with more than 1,000 companies—including Costco, Goodyear, Dole Fresh Fruit, and Kohl’s—already filing claims.
Government and Agency Responses
The Justice Department filed a notice of appeal, stating it will contest the “universal injunction” and seek a stay limited to the specific importers named in each case. CBP officials emphasized that they will continue processing refunds “as quickly as it can” in a phased approach, focusing first on payments not finalized before the Supreme Court decision. The agency also noted a lack of “technological ability or legal authority” to recalculate liquidated accounts without importer-specific orders.
Business Reactions and On-the-Ground Impact
Retailers have signaled how refunds will affect pricing. Walmart’s chief financial officer announced price cuts despite refunds representing less than 0.5 % of the company’s $483 billion U.S. sales. Costco’s CEO said the chain will return any tariff costs passed on to members, contingent on refund size and timing. Shipping firms FedEx, UPS and DHL pledged to pass refunds back to shippers and consumers. Smaller firms reported using partial refunds to cover remaining tariffs or stabilize cash flow; Basic Fun’s CEO noted a “total slow roll” after receiving only $10,000 of a $450,000 claim.
Criticism, Legal Disputes, and Gaps
Importers have criticized the pace and scope of the refund system, arguing that CBP’s limited technical capacity hampers timely reimbursement. Judge Eaton reiterated that “the remedy for this unlawful collection is for the United States government to refund the unlawfully collected duties,” while the Justice Department contended the judge exceeded his authority by extending refunds to all importers. The Supreme Court’s opinion did not address refunds, leaving the courts to resolve the procedural dispute. CBP also disclosed that the portal’s first phase cannot handle a significant share of import entries and offered no concrete timeline for expansion.
Verbatim Quotes
- “It is undisputed that the remedy for this unlawful collection is for the United States government to refund the unlawfully collected duties,” — Judge Richard K. Eaton
- “For that reason, defendants intend to appeal the court's universal injunction,” — Justice Department attorney (filing)
- “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,” — Jay Foreman, CEO, Basic Fun
- “Our choices were bad and worse: raise prices and lose customers, or keep prices the same and not make any money,” — Melkon Khosrovian, Greenbar Distillery owner
- “working to swiftly process refunds and return them to the shippers and consumers who originally bore those charges.” — FedEx spokesperson
Outlook: Pending Appeals and Hearings
Judge Eaton has scheduled a June 9 hearing on whether the government must accelerate repayments. The administration’s appeal, filed Friday, seeks to stay the injunction except for importers already litigating. The outcome will determine whether the nationwide refund process proceeds as ordered or is limited to case-by-case resolutions, with significant implications for businesses awaiting reimbursement.
