Businesses across the United States have begun receiving billions of dollars in tariff refunds after courts determined that President Donald Trump lacked the authority to impose certain global tariffs. However, the refund process could face new uncertainty as the Trump administration prepares to appeal a ruling that allows all affected importers—not just companies that filed lawsuits to seek reimbursement. According to a report by PBS NewsHour, the appeal could significantly affect the timeline for returning billions of dollars collected under the invalidated tariff program.
What Happened?
The dispute stems from tariffs imposed by President Donald Trump in April 2025 under the International Emergency Economic Powers Act (IEEPA). The tariffs applied to imports from nearly every country and generated substantial revenue for the federal government.
In February 2026, the U.S. Supreme Court ruled that Trump lacked the constitutional authority to implement those country-by-country tariffs under the law he cited. The decision triggered a nationwide refund process for importers who had paid the duties.
Since then, U.S. Customs and Border Protection (CBP) has been processing claims and issuing repayments to eligible businesses.
Refund Claims Have Reached Massive Levels
Federal filings show that businesses have submitted refund applications totaling approximately $85 billion as of May 22, representing more than half of the estimated $166 billion the government may owe importers.
CBP has already instructed the Treasury Department to distribute roughly $20.6 billion in refunds, with the first successful payments reaching businesses on May 12.
Large corporations and smaller companies alike have participated in the process, including:
- Costco
- Goodyear Tire
- Dole Fresh Fruit
- Kohl’s
- FedEx customers and importers
- Manscaped
- Basic Fun
- Greenbar Distillery
The scale of the refund effort makes it one of the largest tariff reimbursement programs in U.S. history.
Trump Administration Plans Appeal
The Trump administration informed the U.S. Court of International Trade that it intends to challenge a ruling by Judge Richard K. Eaton.
The judge previously determined that all importers affected by the unlawful tariff collections should be eligible for refunds, regardless of whether they personally filed lawsuits.
Justice Department attorneys argue that the ruling exceeds the court’s authority and have announced plans to appeal the universal refund order.
The administration also objected to Eaton’s request that CBP Commissioner Rodney Scott personally testify regarding how quickly the government can process all refund claims.
Legal Questions Remain
Government attorneys contend that Customs lacks both the legal authority and technological capability to recalculate certain finalized import accounts without importer-specific court orders.
Judge Eaton disagreed, stating that the government is obligated to return money collected under tariffs that courts have ruled unlawful.
The court has scheduled a hearing on June 9 to examine whether additional steps should be taken to accelerate the refund process.
Economic Impact on Businesses
For many companies, the tariff refunds provide much-needed financial relief after more than a year of elevated import costs.
Toy manufacturer Basic Fun reported receiving approximately $450,000 in repayments so far but said the overall pace remains slow.
Men’s grooming company Manscaped has reportedly recovered around 30% of its $12 million claim and plans to strengthen its balance sheet after taking on debt to manage tariff costs.
Meanwhile, Greenbar Distillery in California has used some of its refund to offset expenses associated with imported ingredients and packaging materials.
The broader debate over tariffs continues to shape economic policy discussions, similar to ongoing debates covered in Trump Iran Deal Negotiations and Oil Prices and Iran Peace Deal, where trade and international economic decisions remain closely connected to U.S. business conditions.
Retailers Promise Consumer Benefits
Several major retailers have indicated that tariff refunds could ultimately benefit consumers.
Walmart executives stated that some refund proceeds may support future price reductions on selected products.
Costco has also suggested that it intends to return tariff-related costs previously passed on to customers, though final decisions will depend on the size and timing of future reimbursements.
Shipping companies including FedEx, UPS, and DHL have similarly pledged to pass tariff refunds back to customers who originally paid the charges.
What Happens Next?
The appeal could determine whether all affected importers are entitled to refunds or whether reimbursement remains limited to businesses that pursued legal action.
At the same time, Customs and Border Protection continues processing claims through a phased approach while courts weigh the scope of federal obligations.
Although the Supreme Court invalidated the specific country-based tariffs imposed under the IEEPA, other tariffs enacted under separate legal authorities remain in effect. The Trump administration has also continued exploring additional trade measures since the ruling.
As legal battles continue, the outcome could influence future presidential authority over trade policy and shape how courts address tariff disputes for years to come.
Businesses are receiving refunds because the Supreme Court ruled that certain Trump-era tariffs were imposed without proper legal authority.
CBP has directed approximately $20.6 billion in refunds, while claims totaling about $85 billion have been submitted.