Judge Orders Billions in Refunds for Illegal Trump-Era Tariffs

The ruling by the Court of International Trade in New York follows a Supreme Court decision finding that Donald Trump exceeded his authority under the 1977 International Emergency Economic Powers Act when imposing tariffs on over 300,000 businesses. While the Justice Department argued that manual reviews of millions of entries would be required, Eaton remained unmoved. "We live in the age of computers," the judge stated, adding that the agency already processes refunds daily through its standard liquidation procedures.

Eaton ordered officials to cease collecting tariffs on pending liquidations and to recalculate duties for past entries, effectively mandating a path toward repayment. The stakes are significant: the government collected $130 billion in tariffs under the act last year, and the Penn Wharton Budget Model suggests total liabilities could reach $175 billion. Nashville-based Atmus Filtration, which initiated the case after paying $11 million in tariffs, represents the thousands of small businesses now awaiting word on how the government intends to comply. Customs officials are scheduled to report their implementation plan to the court this Friday.