Judge urges Trump administration to drop $166B tariff appeal

The US government owes importers roughly $166 billion. A federal judge would really like the Trump administration to stop dragging its feet on paying up.

Judge Richard Eaton of the US Court of International Trade has urged the administration to withdraw its appeal of a sweeping tariff refund order, warning that continued litigation risks delaying repayments to hundreds of thousands of American businesses. The refunds stem from the Supreme Court’s February 20, 2026 ruling that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful.

What happened and why it matters

The Trump administration used IEEPA as the legal basis for sweeping tariffs on imported goods. The Supreme Court ruled the tariffs unlawful earlier this year.

Judge Eaton subsequently ordered universal refunds for all importers of record, not just the handful of companies that had filed lawsuits challenging the tariffs. The scope is staggering: more than 330,000 importers, 53 million individual customs entries, and an estimated $166 billion in refunds plus interest.

US Customs and Border Protection began processing refunds through its CAPE system, and over 14 million businesses have already registered. Some refunds have already gone out the door.

Then the Trump administration appealed. On June 2, 2026, it filed with the US Court of Appeals for the Federal Circuit, seeking to narrow the scope of who gets their money back.

The $166 billion question

The administration’s legal argument centers on limiting refunds to importers who were parties to the original litigation. This is a common government strategy in cases involving widespread refunds: acknowledge the ruling but fight over who benefits from it.

The $166 billion figure represents the base tariff amounts collected. Interest accrues on top of that. Every month the appeal drags on, the eventual bill gets larger.

Why a trade court judge is making noise

The refund operation is already one of the largest in US customs history. Processing 53 million entries across 330,000 importers is a massive logistical undertaking even without legal complications.

What this means for businesses and markets

For importers, the practical advice is relatively simple but frustrating: register with CBP’s CAPE system if you haven’t already, and prepare for a timeline that remains uncertain. The 14 million businesses already in the system are positioned to receive refunds as processing continues, but the appeal introduces a variable that no one can precisely forecast.

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