Trump Administration Fights Court Order to Refund $166 Billion in Struck-Down Tariff Revenue

Two parallel legal battles are reshaping U.S. trade policy. In the first, the Court of Appeals for the Federal Circuit ruled Thursday that Trump's replacement 10% global tariff — imposed under Section 122 of the Trade Act of 1974 after the Supreme Court struck down his broader IEEPA tariffs in February — is likely legal and may continue to be collected while litigation proceeds; the tariffs are set to expire July 24 unless Congress acts. In the second dispute, Court of International Trade Judge Richard Eaton has been pressing the Trump administration to accelerate refunds of the roughly $166 billion collected under the now-invalidated IEEPA tariffs, ordering that 'all importers of record' are entitled to repayment. As of June 1, CBP had accepted $89.6 billion in claims for processing and directed the Treasury to issue $20.6 billion in refunds, with total planned refunds expected to reach $127 billion. The Justice Department is appealing Eaton's universal refund order, arguing only the more than 2,500 companies that filed lawsuits are legally entitled to refunds — a position that could leave the vast majority of the estimated 330,000 affected importers without recourse. The Federal Circuit temporarily suspended Eaton's requirement that CBP Commissioner Rodney Scott testify in person, and CBP's executive assistant commissioner for trade, Susan Thomas, appeared instead, telling the court the agency cannot process all refunds at once and will not extend the process beyond an 80-day window while the broader order is under appeal. Judge Eaton warned that the delay is creating a 'growing inequity' between large and small businesses.