Trump Administration to Appeal Tariff Refund Ruling, Potentially Slowing Reimbursement Process

According to foreign media reports, the U.S. Department of Justice recently informed the federal judge overseeing the relevant case that the Trump administration plans to appeal the tariff refund ruling, which may slow down the refund process for 330,000 importers.

In February 2026, the U.S. Supreme Court ruled 6-3 that the reciprocal tariffs imposed by the Trump administration in April 2025 on most countries, based on the International Emergency Economic Powers Act of 1977, were unconstitutional. Subsequently, U.S. Customs and Border Protection (CBP) initiated a refund process. Data disclosed by CBP shows that the first batch of successful applicants received their refunds on May 12, approximately three weeks after importers and customs brokers began submitting applications. As of May 22, CBP had accepted refund applications totaling $85 billion, accounting for more than half of the $166 billion the government is obligated to refund, and has instructed the Treasury Department to disburse $20.6 billion in refunds.

However, on May 30, 2026, the U.S. Department of Justice informed the federal judge that the Trump administration would appeal the ruling made by Judge Richard Eaton of the U.S. Court of International Trade. This ruling clarified that all importers who paid the invalid tariffs are eligible to apply for refunds, covering all 330,000 eligible importers, not limited to companies that had already filed lawsuits. Justice Department lawyers also objected to Judge Eaton's request for CBP Commissioner Rodney Scott to testify in court on June 9, proposing that Scott's deputy appear instead. Relevant documents indicate the Justice Department believes Eaton's ruling exceeded his authority. During the appeal, CBP will only process refund applications from companies that have filed lawsuits in stages.

Judge Eaton's response indicated that he needs to directly confirm the timeline for completing all refunds and whether it is necessary to require the government to expedite the process. Full refunds for illegally collected tariffs constitute a non-controversial remedy. CBP is currently processing refund applications in phases, prioritizing tariff payments that were not fully settled before the Supreme Court's ruling. The systems for these payments are still in an open status, making the processing simpler.

Information disclosed by the Justice Department shows that for older accounts where payments have been fully settled, CBP first needs to perform technical upgrades to the refund interface. Furthermore, it requires separate rulings for each company involved in litigation to recalculate the taxes. Currently, over 1,000 companies have filed lawsuits with the U.S. Court of International Trade regarding tariff refunds. If the government's appeal is successful, importers who have not filed lawsuits may not receive refunds.

Legal industry sources estimate that companies that have filed lawsuits represent only a small portion of the total number of companies that paid the tariffs. The appeal may primarily affect refunds for tariffs on goods that have been in customs for over 314 days. Even though the Supreme Court has issued a final ruling, the appeal could still slow down the overall refund process, buying time for the Treasury Department to retain funds.

Some retail companies have stated that refunds will be used to lower product prices. For Walmart, the maximum potential refund amounts to less than 0.5% of its annual U.S. revenue, and related plans have already been implemented. Costco plans to return tariff costs that were passed on to its members. The specific plan will be determined based on the scale of the refunds, the timing of receipt, and the progress of related consumer claim lawsuits. Logistics companies FedEx, UPS, and DHL have all committed to fully refunding the amounts they receive to the consumers or businesses that actually paid the tariffs.

Information disclosed by some small and medium-sized enterprises (SMEs) indicates that the refunds received will be used to pay off remaining or future tariffs and to repair their financial health. Toy company Basic Fun has received a $450,000 refund, representing 7% of its total application amount, with subsequent refund progress noticeably slowing down. Men's grooming brand Manscaped has received 30% of its total $12 million application. The company had previously delayed investments and taken on debt to pay the tariffs; refunds will first be used to optimize its balance sheet. Los Angeles-based Greenbar Distillery applied for a $90,000 refund and has so far received $18,000. Last year, to offset cost increases from the tariffs, the company invested in upgrading its bottling automation system to reduce labor costs. During the tariff imposition period, the company faced a choice between raising prices and losing customers or maintaining prices and losing profits.