U.S. Judge Rules Customs & Border Protection Must Begin Refunds of Tariffs

March 5, 2026  by Karen Parrish in Business Strategy, Industry   

The U.S. Supreme Court ruled 6-3 that the "Liberation Day" tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unlawful — a landmark decision that potentially entitles thousands of small and mid-sized businesses to refunds of tariff duties already paid.

Legal experts are urging businesses to act immediately: refunds are not automatic, a strict 180-day filing window may apply, and businesses that miss the deadline risk permanently forfeiting their right to recover.

Judge Richard Eaton ruled that "all importers of record" whose entries were subject to duties under the International Emergency Economic Powers Act (IEEPA) are entitled to refunds. Over $130 billion in tariffs collected by the U.S. government, with total potential refunds estimated to reach $175 billion.

The decision is a significant setback for the Trump administration, which had sought to delay the process and previously defended the tariffs as necessary for trade. While the order is in place, the specific timeline and mechanism for processing these massive refunds remain complex and "murky," with experts anticipating it could take substantial time.

"All importers of record whose entries were subject to IEEPA duties are entitled to the benefit" from the high court's ruling, Judge Richard Eaton wrote.

 

The payment process remains murky. But the trade court decision marks a setback for Trump, who has sought to replace the import taxes and bemoaned the prospect of refunds.

Despite the court order, US Treasury Secretary Scott Bessent indicated that the administration is "likely" to implement a 15% global tariff this week, raising the rate from 10%. 

Numerous companies, including Costco, Revlon, and FedEx, filed lawsuits seeking to recover the duties paid. The tariffs primarily affected various imports, with specific impacts noted on copper products, among others. 

Companies are advised to work with customs brokers to review their entries and prepare for potential refund claims, with some, already launching automated tools to assist in calculating potential refunds. TariffRefundLaw.com, and initiative of Grayhawk Law, is another that was established specifically to help importers navigate this process and secure the refunds they are owed.

"This ruling is a major victory for American businesses that were forced to absorb unlawful tariff costs. But the ruling alone doesn't put money back in anyone's pocket. Businesses may need to take affirmative legal steps within a 180-day window to preserve and exercise their right to a refund. The clock is already running,” said Matthew A. Seligman, founder, Grayhawk Law.

The Supreme Court and follow-up ruling by Judge Eaton affects any business that paid IEEPA tariff duties since early 2025. The path to recovery likely involves filing timely protests with the U.S. Customs and Border Protection (CBP).

Key facts to remember:

Refunds are not automatic. The Supreme Court's ruling does not trigger automatic repayment.

A 180-day deadline applies. Importers likely must file within 180 days of entry liquidation. Each missed entry risks a permanently lost refund.

The process requires expertise. Customs protests are complex, and minor procedural errors may result in denial.