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A federal trade court judge has issued a crucial directive affecting the refund process for tariffs imposed during President Trump’s administration. On Wednesday, Judge Richard Eaton ordered the government to complete the necessary paperwork for imported goods, excluding any charges for tariffs that have been deemed invalid.
This decision by Judge Eaton, who serves as a senior judge on the U.S. Court of International Trade, is poised to influence millions of tariff entries that were previously declared illegal by a significant Supreme Court ruling.
While companies won’t receive refunds immediately, this order represents a significant step forward in the often-complicated refund process.
Over 1,000 companies have filed lawsuits seeking refunds, anticipating that the government will now reimburse tens of billions of dollars following the landmark Supreme Court decision. Judge Eaton’s ruling was initially part of a lawsuit filed by Atmus Filtration. However, he noted that the trade court’s chief judge has entrusted him with overseeing all related refund cases.
“There is no risk of another judge, even within this court, arriving at a different conclusion,” Eaton stated.
“To find otherwise would be to thwart the efficient administration of justice and to deny those importers who have filed suit the efficient resolution of their claims, and to deny entirely importers who have not filed suit the benefit of the” Supreme Court decision, he continued.
The Supreme Court’s blockbuster 6-3 ruling rejected Trump’s argument that a 1977 emergency law delegated him sweeping authority to impose tariffs. It invalidated most of the sweeping levies he’s imposed on trading partners across the globe since returning to the White House.
Businesses have since pushed for speed in the fight for refunds, while the administration has so far opposed their efforts to expedite the process beyond normal timetables.
To date, many importers have only made an estimated tariff payment.
The judge’s new order mandates Customs and Border Protection (CBP) finalize those entries, a step known as “liquidation,” without including any tariff charges. For goods that have already been liquidated, Eaton said officials must redo the step.
Ahead of the judge’s order, the Trump administration signaled it would still take time for refunds to go out even once the entries are all liquidated properly.
“Regardless of entry type and liquidation cycle, CBP still requires a review period to ensure no violation of other Customs laws and no other duties, taxes, or fees are owed,” wrote Brandon Lord, a senior official at the agency’s trade programs office.