Trump Administration Appeals Court Order on Illegal Tariff Refunds

In February 2026 the Supreme Court invalidated tariffs imposed by President Donald Trump under a 1977 emergency law, tariffs that generated $166 billion in duties. Judge Richard Eaton then ordered a universal refund for all importers. Justice Department appealed, arguing the court exceeded its authority and refunds should be limited to parties that sued.

Associated Press

Feb 2026 – Supreme Court strikes down tariffs; Mar 2026 – Eaton orders universal refunds; Apr 2026 – CBP opens online portal; May 22 2026 – $85 billion in refunds approved; Jun 1 2026 – $89.6 billion in claims accepted; Jun 9 – Federal Circuit hearing on DOJ appeal.

Associated Press

CBP projects up to $127 billion in Phase 1 refunds. By early June it directed $20.6 billion to Treasury, paid $22 billion, approved $85 billion in refunds and accepted $89.6 billion in claims. The unresolved tens of billions affect small importers, many of whom may need to sue.

Associated Press

Justice Department says only 2,500 plaintiffs who sued are entitled to refunds, citing Supreme Court limits on nationwide injunctions. CBP says it is processing Phase 1 refunds while developing procedures for older duties. Judge Eaton’s June 3 letter called the June 9 hearing a settlement-negotiation and noted substantive law is settled. Liberty Justice Center chair Sara Albrecht praised Eaton’s proactive stance and said the group has contingency plans.

Politico

Importers claim the government’s approach creates attrition, forcing to abandon claims. Jay Foreman, CEO of Basic Fun!, likened it to insurers that deny claims unless claimants persist through repeated denials. Matthew Seligman warned the universal refund order has left importers “in the dark” about obtaining legally owed refunds.

Politico

CBP projects up to $127 billion in Phase 1 refunds, yet total illegal duties total $166 billion, leaving a gap. The Justice Department limits refunds to litigants; Eaton’s order seeks universal eligibility. No final ruling on refund scope or class-action certification exists.

Associated Press

• “The message from the government is pretty straightforward: we don’t have the authority to issue these refunds, and unless a court orders us to repay a specific company, we’re not going to do it,” — Former Trump administration official, trade lawyer

Politico

• “It was inevitable that the government would appeal [Eaton’s April order requiring universal tariffs] and win.” — Matthew Seligman, founder, Grayhawk Law

Politico

• “It’s almost like the insurance companies — they just deny your claim, and it’s only the people that are willing to fight through four or five, six denials that get paid,” — Jay Foreman, CEO, Basic Fun!

Politico

• “All of the substantive law in this case has either been decided by the Supreme Court, or is the subject of settled law,” — Judge Richard Eaton

CNBC

The Federal Circuit will review the DOJ appeal and decide whether to stay or modify Eaton’s universal refund order. Plaintiffs have asked the CIT to certify a class of all affected importers, which could simplify future repayments. The June 9 hearing will shape the timeline and scope of the remaining $80-plus billion in refunds.

Politico