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2h ago

Trade Court Orders CBP to Begin Refunding Unlawful IEEPA Tariffs

The ruling forces Customs to recalculate entries without the invalidated duties, opening a large-scale refund process the administration is expected to challenge.

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Cars drive by a Mercedes-Benz dealership on the Bedford Automile in Bedford, Ohio, Friday, Feb. 20, 2026. (AP Photo/Sue Ogrocki)
FILE - Avocados imported from Mexico are for sale in a supermarket in Miami as the United States imposed 25% tariffs on goods from Canada and Mexico, starting a trade war with its closest neighbors and allies Wednesday, Mar. 5, 2025. (AP Photo/Lynne Sladky, file)

Overview

  • Judge Richard Eaton directed U.S. Customs and Border Protection to remove IEEPA duties from liquidation, recalculate prior entries, and start refunds for all importers of record.
  • Analysts estimate about $130 billion was collected under the struck-down tariffs, with potential refund exposure approaching $175 billion, and CBP has indicated refunds would include interest subject to review.
  • More than 2,000 lawsuits seeking repayments have been filed, including by companies such as FedEx, Costco and Pandora, and Eaton said he will oversee related refund cases.
  • The administration is expected to appeal or seek a stay of the order while pursuing temporary global tariffs under Section 122 set at 10%, with officials signaling a likely move to 15%.
  • A coalition of 24 states filed suit in the Court of International Trade to block the new Section 122 tariffs and seek refunds of any payments under that authority, while the refund order applies only to IEEPA-era duties and not Section 301 or 232 tariffs.