US Tariff Refund Process Faces Potential Delays as Administration Appeals Ruling

Date: June 2, 2026

The Biden administration has announced its intention to appeal a recent court ruling that permits all companies that paid unlawfully imposed tariffs to seek refunds. This decision follows a U.S. Supreme Court ruling that determined former President Donald Trump did not have the authority to impose such tariffs on most trading partners.

Initial Refund Flow and Underlying Ruling

Before the appeal announcement, the refund process, overseen by U.S. Customs and Border Protection (CBP), was progressing well. The first successful refund applicants received their payments on May 12, just three weeks after initiating claims. By May 22, CBP had received refund requests totaling $85 billion, which is more than half of the estimated total liability of $166 billion. The Treasury Department was already set to disburse $20.6 billion.

Challenges to Refund Eligibility and Potential Impact

The government's appeal focuses on the broad interpretation of the court's ruling, which allows "all registered importers" to claim refunds, not just those who have filed lawsuits. The Department of Justice argues that the lower court's order exceeded its authority and aims to limit refunds to companies that have initiated legal action, potentially excluding many businesses from recovering their funds.

Dispute Over Official Testimony

The legal dispute also includes a requirement for CBP Commissioner Rodney Scott to testify in person before the U.S. Court of International Trade on June 9. Judge Richard K. Eaton is seeking clarity on the timeline for completing refunds for approximately 330,000 eligible importers and whether government action is needed to expedite the process. However, the Justice Department has requested that Scott's deputy appear instead, claiming that the Commissioner cannot be compelled to testify.

Implications of the Appeal on Refund Disbursements

The appeal is expected to significantly delay the refund process. CBP is processing claims in phases, prioritizing amounts not settled before the Supreme Court's decision. Recalculating final duties for earlier settled accounts requires system upgrades and specific court directives, complicating and prolonging the process.

Companies Not Suing and the Risk of Lost Opportunity

While over a thousand companies have filed lawsuits to recover tariff costs, many others eligible for refunds under the Supreme Court's decision have not pursued legal action. If the government's appeal is successful, these companies may lose their right to refunds. Legal experts suggest that the appeal could primarily affect older shipments that cleared customs more than 314 days before the official duty assessment, posing a risk for affected businesses.

The Advantage of Time and Government's Financial Gain

Industry observers note that delays in the refund process could financially benefit the government, as it would earn interest on the withheld funds. Barry Appleton, a law professor, indicated that if the government can freeze the refund mechanism during litigation, it could gain significant financial advantages at the expense of businesses that paid the duties.

Conclusion

The government's decision to appeal introduces uncertainty into the tariff refund process, complicating and prolonging the recovery of funds for businesses that had anticipated a swift resolution following the Supreme Court's ruling.