U.S. Supreme Court Ruling Leads to Tariff Refunds for Businesses

New York businesses, both large and small, have begun to receive tariff refunds after a ruling by the U.S. Supreme Court determined that President Donald Trump lacked constitutional authority to increase import taxes on goods from many other countries. However, the process could face delays, as the Trump administration announced plans to appeal a federal judge’s order. This order mandates that all companies that paid the invalidated duties be eligible for refunds, not only those who filed lawsuits.

Initially, the refund process was going smoothly with oversight by U.S. Customs and Border Protection (CBP). The first refund payments reached applicants’ bank accounts on May 12, just three weeks after importers and their customs brokers began submitting claims online. According to CBP, as of May 22, applications amounting to $85 billion—more than half of the $166 billion the government owes—were processed for refunds. Thus far, $20.6 billion in refunds has been instructed by CBP for issuance by the Treasury Department.

The appeal preparations from the administration came as they opposed a demand by Judge Richard K. Eaton. The judge requested CBP Commissioner Rodney Scott to appear in the U.S. Court of International Trade to address the timeline for refunding all eligible importers, which could number around 330,000. A hearing is scheduled for June 9, where Judge Eaton will discuss the matter of expediting the repayment.

Justice Department lawyers sought permission for Scott’s deputies to represent him in court, citing his status as a high-ranking official. They argued that Judge Eaton overstepped by asserting that the Supreme Court’s ruling entitled all importers to refunds. “Defendants intend to appeal the court’s universal injunction,” the lawyers wrote, affirming that CBP would continue processing refunds promptly in phases for companies with pending trade court complaints.

In his response, Judge Eaton insisted on hearing from Scott directly regarding the government’s commitment to return the funds collected between April 2025, when Trump imposed tariffs, and late February when the Supreme Court invalidated them. “This case involves $166 billion,” he stated. “The remedy for this unlawful collection is undisputed; the government must refund the unlawfully collected duties.”

Some nation-wide retailers plan to use the refunds to reduce customer prices. For example, Walmart’s Chief Financial Officer, John David Rainey, highlighted plans to implement price cuts despite the refund constituting less than 0.5% of Walmart’s $483 billion annual U.S. sales. Meanwhile, smaller enterprises indicated they would allocate refunded amounts towards outstanding tariffs, debt reduction, or operational costs.

Jay Foreman, CEO of Basic Fun, a toy company, received approximately $450,000—or 7% of his total claim—over two days this month. He viewed this initial refund as promising, but noted that additional refund amounts have been minimal, describing the process as “a total slow roll.” Foreman expressed a need for prompt fund distribution, underlining the critical role these refunds play in supporting business operations amid ongoing economic challenges.