Businesses big and small have started receiving tariff refunds after the U.S. Supreme Court ruled that President Donald Trump lacked the constitutional authority to impose higher import taxes on goods from nearly every other country.
The Trump administration said Friday that it intends to appeal a federal judge’s order to allow all companies that paid the invalidated duties to seek refunds — not just the ones that filed lawsuits.
Until the Department of Justice informed the judge of its planned appeal, the refund system overseen by U.S. Customs and Border Protection had been working fairly smoothly. Refunds reached the bank accounts of the first successful applicants on May 12.
Applications for refunds totaling $85 billion — more than half of the $166 billion the agency estimated the government owes to companies that paid the tariffs — were accepted for processing as of May 22, CBP reported. It said it had so far directed the Treasury Department to issue $20.6 billion in refunds.
The Legal Fight
The administration revealed its appeal preparations while objecting to a demand by Judge Richard K. Eaton for CBP Commissioner Rodney Scott to appear in the U.S. Court of International Trade to answer questions about how long it would take to repay all 330,000 importers that might be eligible for refunds.
Justice Department lawyers argued that as a high-ranking presidential appointee, the CBP chief could not be compelled to testify in court. They also argued that Eaton exceeded his own authority when he determined in March that the Supreme Court’s ruling entitled “all importers of record” to refunds.
“For that reason, defendants intend to appeal the court’s universal injunction,” the lawyers wrote.
The Judge’s Response
In a terse reply Friday, Eaton said he needed to hear directly from Scott whether the government would return all of the money it collected between when Trump put what he called “reciprocal” tariffs on most countries in April 2025 and when the Supreme Court struck them down in late February.
“This case involves $166 billion,” the judge wrote. “It is undisputed that the remedy for this unlawful collection is for the United States government to refund the unlawfully collected duties.”
What Businesses Are Saying
Some national retail chains said they planned to use their tariff refunds to lower customer prices on some items. Walmart Chief Financial Officer John David Rainey told analysts last week that the company would implement price cuts.
Some smaller companies told the Associated Press that the partial refunds they’ve received so far would go toward paying remaining or future tariffs, reducing debt, or just keeping the lights on after more than a year of uncertainty.
Jay Foreman, CEO of toy company Basic Fun, said he received about $450,000, or 7% of his total claim, over two consecutive days. He called the process a “total slow roll.”
“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.
The Bottom Line
The Trump administration plans to appeal a federal judge’s order requiring the government to refund all importers who paid invalidated tariffs — not just those who sued. The government owes an estimated $166 billion to 330,000 importers. Only $20.6 billion has been refunded so far. A judge has scheduled a June 9 hearing on whether to compel the government to speed up the process.
