Over $10 Billion in Tariffs Awaiting Refund, US Judge Urges Trump Administration to Speed Up Processing
Judge Richard Eaton of the U.S. Court of International Trade urged the Trump administration to accelerate the refund of over $10 billion in tariffs that were later ruled illegal by the Supreme Court, citing growing unfairness between large and small importers.
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- 📰 Published: June 10, 2026 at 13:45
- 🔍 Collected: June 10, 2026 at 13:52 (7 min after Published)
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(Central News Agency, New York, 9th, Combined Foreign Reports) A judge on the U.S. Court of International Trade on Tuesday urged the Trump administration to speed up the refund of more than $10 billion in tariffs that were collected but later ruled illegal by the Supreme Court, but did not issue a new order for enforcement.
According to Reuters, Judge Richard Eaton of the Court of International Trade in Manhattan, New York, said that the slow processing of some refund applications has created a "growing inequity" between large importers and smaller businesses.
He said large importers hire customs brokers to help navigate the government's refund system, making it easier for them to obtain refunds, while smaller businesses lacking such resources are at a disadvantage.
Eaton said this inequality is an "unintended consequence" of the government's design of the refund mechanism, and he does not believe the Trump administration intentionally favors large importers.
However, he said the Trump administration's appeal of his March 4 ruling is a major cause of the refund delays.
"It is time to refund all tariffs now... One way to achieve that goal is for the government not to appeal my ruling," the federal judge, appointed by former Democratic President Bill Clinton, said at the hearing.
According to U.S. Customs and Border Protection (CBP), nearly $90 billion in refund applications have been received and are being processed. These fall under the simpler "Phase 1 refunds," with a total estimated value of up to $127 billion.
The focus of Tuesday's hearing was on so-called liquidated tariffs, which are legally more complex and older. Generally, importers first pay tariffs based on estimated amounts, and about a year later, CBP confirms the final amount in a process called liquidation.
On March 4, Eaton ruled that the Trump administration must refund these liquidated tariffs but temporarily stayed the order to allow the government to establish a refund mechanism.
Eaton questioned whether the government genuinely intends to refund the money, as one of the reasons for the government's appeal is that a federal judge does not have the authority to issue a nationwide injunction.
To avoid legal disputes, some companies have asked Eaton to certify all importers who paid the illegal tariffs as a single litigation group.
As of the end of Tuesday's hearing, Eaton had not decided whether to grant class-action status or whether to lift the stay on his March 4 order.
According to Reuters, Judge Richard Eaton of the Court of International Trade in Manhattan, New York, said that the slow processing of some refund applications has created a "growing inequity" between large importers and smaller businesses.
He said large importers hire customs brokers to help navigate the government's refund system, making it easier for them to obtain refunds, while smaller businesses lacking such resources are at a disadvantage.
Eaton said this inequality is an "unintended consequence" of the government's design of the refund mechanism, and he does not believe the Trump administration intentionally favors large importers.
However, he said the Trump administration's appeal of his March 4 ruling is a major cause of the refund delays.
"It is time to refund all tariffs now... One way to achieve that goal is for the government not to appeal my ruling," the federal judge, appointed by former Democratic President Bill Clinton, said at the hearing.
According to U.S. Customs and Border Protection (CBP), nearly $90 billion in refund applications have been received and are being processed. These fall under the simpler "Phase 1 refunds," with a total estimated value of up to $127 billion.
The focus of Tuesday's hearing was on so-called liquidated tariffs, which are legally more complex and older. Generally, importers first pay tariffs based on estimated amounts, and about a year later, CBP confirms the final amount in a process called liquidation.
On March 4, Eaton ruled that the Trump administration must refund these liquidated tariffs but temporarily stayed the order to allow the government to establish a refund mechanism.
Eaton questioned whether the government genuinely intends to refund the money, as one of the reasons for the government's appeal is that a federal judge does not have the authority to issue a nationwide injunction.
To avoid legal disputes, some companies have asked Eaton to certify all importers who paid the illegal tariffs as a single litigation group.
As of the end of Tuesday's hearing, Eaton had not decided whether to grant class-action status or whether to lift the stay on his March 4 order.
FAQ
What is the core of this news?
A US court urged the Trump admin to speed up refunds of over $10B in tariffs ruled illegal by the Supreme Court.
Why are the refunds delayed?
Mainly due to the administration's appeal and design flaws in the refund system.
Who is affected by this issue?
All companies importing into the US, especially small and medium-sized businesses.