Businesses in the United States are receiving tariff refunds following a U.S. Supreme Court decision that deemed President Donald Trump’s import taxes unconstitutional. However, the Trump administration’s plan to appeal a federal judge’s order might halt this progress. The order allows all companies that paid these tariffs to receive refunds, not just those that filed lawsuits.
Until the Department of Justice announced its appeal intentions, the U.S. Customs and Border Protection (CBP) had been processing refunds smoothly. The first successful applicants received refunds starting May 12. By May 22, applications for refunds amounted to $85 billion, over half of the $166 billion the government owes to companies, according to CBP.
The administration revealed plans to appeal while opposing a demand by Judge Richard K. Eaton for CBP Commissioner Rodney Scott to testify about the duration of the refund process. The judge scheduled a hearing on June 9 to determine whether the government should expedite the refunds. Justice Department lawyers requested that deputies appear instead of Scott, citing his status as a high-ranking official. They argued Judge Eaton overstepped by extending the Supreme Court’s ruling to all importers.
Judge Eaton emphasized the substantial financial stakes, stating that the remedy for unlawfully collected duties is clear. Some national retailers plan to reduce prices as a result of receiving refunds. Walmart, for example, announced potential price cuts despite the refunds representing a small fraction of its sales.
Smaller businesses are using partial refunds to manage debts and ongoing costs. Jay Foreman, CEO of Basic Fun, received $450,000 in refunds, about 7% of his claim. Though initially optimistic, Foreman voiced frustration at the slow refund process and called for quicker financial returns to support business operations.