Trump Appeals Order for $166B in Tariff Refunds
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- Trump administration told the U.S. Court of International Trade it intends to appeal Judge Richard K. Eaton's order entitling "all importers of record" to refunds of the invalidated tariffs, arguing Eaton exceeded his authority in issuing a universal injunction.
- U.S. Customs and Border Protection reported that as of May 22 it had accepted $85 billion in refund applications — more than half of the $166 billion it estimates the government owes — and had directed Treasury to issue $20.6 billion, with first refunds reaching applicants' bank accounts on May 12.
- Judge Eaton demanded CBP Commissioner Rodney Scott personally appear on June 9 to explain how long it would take to repay all 330,000 potentially eligible importers, writing that "it is undisputed that the remedy for this unlawful collection is for the United States government to refund the unlawfully collected duties."
- Walmart and Costco told investors they plan to use their tariff refunds to cut prices or return money to members, with Walmart CFO John David Rainey noting the company's maximum potential refund represents less than half of 1% of its annual U.S. sales.
- FedEx, UPS, and DHL have all promised to transmit any tariff refunds they receive directly to the customers who originally paid the import taxes when the carriers acted as customs brokers on overseas deliveries.
- Smaller importers described mixed results: toy company Basic Fun received $450,000 (7% of its claim) and called the pace a "total slow roll," while Manscaped has received about 30% of its $12 million claim and Greenbar Distillery received $18,000 of a $90,000 claim, with executives saying the funds were needed to pay remaining tariffs and shore up balance sheets after over a year of financial strain.
- The Supreme Court invalidated the country-by-country tariff rates in its 6-3 February 20 decision, finding Trump lacked constitutional authority under the 1977 International Emergency Economic Powers Act, though Trump has since moved to introduce new tariffs.
Why it matters: The DOJ's appeal could freeze the refund machinery for months, leaving roughly $145 billion in unprocessed refunds in Treasury's hands while 330,000 eligible importers wait — including companies like Manscaped and Basic Fun that have already taken on debt or deferred investments to cover the now-invalidated duties. Every additional month of litigation is time the government holds onto money that Eaton has already called undisputed repayment of unlawful collections.
