Trump Administration Fights $166B Tariff Refund Order, June 10

The Trump administration is appealing a federal court order to refund $166 billion in tariffs that the Supreme Court struck down as illegal. The move delays payments to importers even as U.S. Customs processes refund claims through a new online system. A federal judge on Tuesday urged the government to drop the appeal, warning that the legal position harms importers and serves no useful purpose.

What the Supreme Court Ruled

In February 2026, the Supreme Court found that President Trump’s tariffs issued under the International Emergency Economic Powers Act (IEEPA) were illegal. The tariffs had applied globally and collected $166 billion before the ruling. U.S. Customs and Border Protection opened a claims system in April to process refunds for importers who paid those duties.

The Government’s Legal Argument

The Justice Department argues that only companies that filed lawsuits challenging the tariffs are entitled to refunds. The government also claims it cannot refund tariffs that have been finalized without a separate court order for each importer. The White House is pushing this legal strategy even as it continues processing refunds through the new system.

Judge Eaton’s Frustration

Federal Judge Richard Eaton heard arguments on Tuesday in the U.S. Court of International Trade in New York. He praised the refund system but said the government’s appeal was unnecessary and would only delay payments. Eaton noted that $11.4 billion in refunds is tied up in the dispute over finally liquidated entries. The tariff refund landscape continues to shift as the appeal moves forward.

Refunds Already Processed

U.S. Customs reported that by the end of May, it had validated 15.85 million tariff entries and liquidated 8.5 million for refunds totaling over $85 billion in claims. The agency completed processing and directed Treasury to disburse $20.6 billion, or about 24 percent of total claims. However, 3.9 million entries failed because they were more than 80 days past the liquidation date.

Final Thoughts

The government’s appeal blocks refunds for importers who did not file lawsuits, even though the Supreme Court ruled the tariffs illegal. Judge Eaton’s criticism signals the court may reject the appeal, but delays persist while the case moves through the Federal Circuit.

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