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A federal judge ruled Wednesday that U.S. companies that paid tariffs imposed by Donald Trump under emergency powers later struck down by the Supreme Court of the United States are legally entitled to refunds, a decision that could force the federal government to return tens of billions of dollars to importers.
Richard Eaton, a judge on the United States Court of International Trade, ruled that American importers must be allowed to benefit from the Supreme Court’s Feb. 20 decision finding that Trump lacked authority to impose sweeping tariffs using the International Emergency Economic Powers Act, commonly known as IEEPA.
Eaton’s ruling came in a case brought by Atmus Filtration Technologies, a filtration manufacturer based in Nashville, which argued it should receive a refund for tariffs it paid under the now-invalidated policy.
“Plaintiff and other importers are entitled to benefit” from the Supreme Court’s ruling, Eaton wrote in his decision.
Second Legal Blow to Tariffs
The ruling marks the second major legal setback for the administration’s tariff policy this week.
On Monday, a federal appeals court declined to delay implementation of the Supreme Court’s decision striking down most of the tariffs imposed under IEEPA. That move cleared the way for the Court of International Trade to begin determining how businesses should be reimbursed.
Eaton said he would oversee the cases involving refund claims tied to the tariffs.
“I alone will hear cases pertaining to the refund of IEEPA tariffs,” the judge wrote.
The Supreme Court’s 6–3 decision invalidating the tariffs addressed the legality of the policy but did not specifically address whether businesses should be repaid for duties already collected.
The White House did not immediately respond to requests for comment on the latest ruling.
Potential $175 Billion Liability
Trade experts say the government could face an enormous financial obligation.
Estimates suggest the United States may owe as much as $175 billion in refunds to companies that paid the duties.
Data from U.S. Customs and Border Protection shows the federal government collected roughly $134 billion in tariffs under IEEPA through the end of 2025.
Legal analysts say the administration is likely to challenge Eaton’s ruling or attempt to delay implementation.
Logistical Challenges Ahead
Even if the ruling stands, the refund process could be complicated.
The customs agency routinely handles smaller tariff reimbursements in cases involving errors or corrections, but lawyers say the current system was not designed for refunds on such a massive scale.
Alexis Early, a partner at Bryan Cave Leighton Paisner, said the administrative process will likely be difficult.
“The system was not designed for a mass refund,” Early said. “The devil will be in the details of the administrative process.”
Businesses Seek Reimbursement
A growing number of companies have already filed lawsuits seeking repayment of tariffs collected under the policy.
Major corporations including Bausch + Lomb, Dyson, FedEx, and L’Oréal have sued the federal government seeking refunds.
FedEx has said it would pass reimbursements along to customers if it ultimately recovers the tariff payments.
Small business advocates also applauded the ruling.
We Pay the Tariffs, a coalition representing companies seeking refunds, said the decision validates their legal claims.
“This is a victory for small businesses who have paid billions in unlawful tariffs and deserve their money back,” said executive director Dan Anthony.
Anthony warned, however, that businesses remain concerned the federal government could attempt to delay the process.
“The court acted swiftly and correctly,” he said. “Now the ball is in the government’s court.”
