In a recent development, businesses of all sizes have started to get tariff refunds after the U.S. Supreme Court found that former President Trump did not have the constitutional power to impose higher import taxes. However, the refund process is at risk of stalling due to the Trump administration’s plans to appeal a federal judge’s decision. This decision allows all companies that paid the invalid duties to seek refunds.
Until the Department of Justice informed the judge about the appeal, U.S. Customs and Border Protection had been smoothly operating the refund system. Successful applicants received refunds in their bank accounts by May 12. Importers and customs brokers began submitting claims online roughly three weeks earlier. By May 22, CBP accepted applications totaling $85 billion, more than half of the $166 billion estimated to be owed to companies.
Approximately $20.6 billion in refunds were issued by the Treasury Department as per CBP’s reports. The administration disclosed its preparations for an appeal while opposing a demand from Judge Richard K. Eaton for CBP Commissioner Rodney Scott to testify regarding the timeline to repay 330,000 importers who might be eligible.
Judge Eaton scheduled a hearing for June 9 to discuss why the government should expedite the refund process. Justice Department lawyers contend that Eaton’s demand for Scott to testify is unnecessary, arguing for deputies to represent Scott instead due to his status as a high-ranking appointee. They also claim Eaton exceeded his authority by promising refunds to all importers.
The defense plans to challenge the court’s wide-ranging injunction. It continues refund processes for businesses with pending trade court complaints. Eaton responded stating a need to hear directly from Scott regarding the repayment of tariffs collected between April 2025 and February, when the Supreme Court overturned them.
Some national retail chains, like Walmart, plan to use refund money to reduce customer prices. Walmart’s CFO, John David Rainey, stated price cuts would be implemented despite the refund maximum representing less than half of 1% of the company’s annual U.S. sales. Smaller businesses mentioned using partial refunds to pay tariffs, lower debt, or keep operations running amidst uncertainty and increased costs.
Jay Foreman, CEO of Basic Fun, received about $450,000 over two days, approximately 7% of his total claim. While initial repayments were seen positively, further refunds have been minimal, which he described as a “total slow roll.” Foreman emphasized the importance of releasing funds into the economy to support businesses and maintain operations.