US customs says it cannot yet refund $166 billion in Trump tariffs ruled illegal

Court of International Trade judge Richard Eaton had directed refunds of tariffs imposed under the IEEPA after the Supreme Court ruled them illegal.

• CBP says it can't refund Trump-era tariffs ruled illegal yet
• About $166 billion in tariffs collected under IEEPA measures
• Court order applies to all importers who paid IEEPA tariffs

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US Customs and Border Protection (CBP) told a judge at the Court of International Trade on March 6 that it is not currently able to comply with an order directing it to begin refunding tariffs imposed last year by President Donald Trump that were recently ruled illegal by the US Supreme Court.

In a court filing submitted ahead of a hearing in New York, CBP said it cannot immediately implement the directive to refund the tariffs collected under the International Emergency Economic Powers Act (IEEPA) framework.

The agency also informed the court that the total amount of tariffs collected under the IEEPA measures, along with estimated duty deposits tied to those tariffs, stands at approximately $166 billion as of Tuesday.

The filing came as Judge Richard Eaton prepared to hold a hearing at the US Court of International Trade (CIT) in New York on the issue of refunds.

Eaton has been designated as the sole CIT judge responsible for hearing cases filed by importers seeking refunds for tariffs imposed under the IEEPA.

Earlier in the week, Eaton directed CBP to calculate the cost of processing shipments entering the United States without assessing tariffs and instructed the agency to begin refunding importers who had paid the duties, including applicable interest.

“Customs knows how to do this,” Eaton said during a court hearing on Wednesday. “They do it every day. They liquidate entries and make refunds.”

Multiple importers have filed lawsuits against the Trump administration seeking reimbursement of tariffs they paid since last year under the IEEPA measures.

The refund order issued by Eaton stems from one such case filed by Atmus Filtration, an importer challenging the legality of the tariffs.

According to the court’s direction, the order applies broadly to every duty paid in connection with the IEEPA tariffs, not only to the specific importer involved in the case.

The refund dispute follows a ruling by the US Supreme Court declaring the tariffs imposed under the IEEPA authority illegal.

The tariffs had been introduced by President Donald Trump last year using emergency economic powers provisions.

Importers subsequently challenged the duties in court, arguing that the administration lacked legal authority to impose them under the IEEPA framework.

The Court of International Trade is now overseeing proceedings related to refunds for duties already paid under the measure.