The Trump administration has been challenging a court order requiring the return of all $166 billion in tariffs unlawfully collected from importers, according to a new report. In February, the Supreme Court invalidated certain sweeping tariffs imposed by President Donald Trump on both adversaries and allies under the 1977 International Emergency Economic Powers Act. This decision left the administration grappling with the daunting task of refunding billions of dollars to businesses that had paid the duties.
Administration Resists Refund Order
The administration is pushing back against an order issued this spring by International Trade Court Judge Richard K. Eaton, which mandated immediate refunds of the tariffs, as reported by The New York Times on Wednesday. The Times highlighted the administration's efforts to prevent Rodney S. Scott, Commissioner of U.S. Customs and Border Protection (CBP), from testifying in court next Tuesday regarding the tariff refunds. CBP is responsible for managing the refund process.
After the Department of Justice filed an emergency appeal seeking to replace Scott with another official, Eaton upheld his requirement for Scott's testimony, stating in filings on Wednesday, "There is $166 billion at stake," according to The Times. The Independent has contacted the White House, CBP, and the DOJ for comment.
Background on Tariffs
In April 2025, Trump imposed a 10 percent tariff on all imported goods, along with additional reciprocal levies against countries his administration accused of unfair trade practices. The conservative-leaning Supreme Court ruled 6-3 earlier this year that tariffs imposed under the 20th-century Emergency Powers Act were unconstitutional. Trump criticized the court's decision, expressing that he was "absolutely ashamed" of some justices who ruled against him.
Partial Refunds Reported
Some executives from major companies have indicated that they have already begun receiving tariff refunds. Representatives from Oshkosh Corporation, which manufactures military and industrial vehicles, and Basic Fun, the maker of toys such as Care Bears and Lincoln Logs, told CNBC last month that they had received some refunds for which their companies had previously filed. According to the Times, the Trump administration owes refunds to approximately 330,000 importers for tariffs paid on about 53 million entries.
