CBP Processes $166 Billion in Illegal Tariff Refunds

The United States Customs and Border Protection (CBP) is managing the refund of approximately $166 billion in tariffs illegally imposed under the International Emergency Economic Powers Act, following a Supreme Court invalidation. According to CBP data, the agency has accepted nearly $90 billion in Phase 1 claims and directed the Treasury Department to issue between $20.6 billion and $22 billion in refunds as of early June 2026.

A legal conflict persists between Judge Richard Eaton of the U.S. Court of International Trade and the U.S. Department of Justice. Eaton ordered a universal refund system for all importers to avoid requiring prohibitive individual lawsuits, particularly for small businesses. The Justice Department has appealed this, arguing that only companies involved in over 2,500 existing lawsuits are legally entitled to funds, specifically regarding liquidated tariffs estimated at $10 billion to $11.4 billion.

During testimony in New York on June 9 and 10, Judge Eaton urged the government to withdraw its appeal to prevent further delays. Reports indicate that major corporations like Ford and General Motors plan to use their recoveries to pay debt or reinvest, while logistics firms such as FedEx and UPS have committed to refunding applicable duties to their customers. Some smaller firms have sold their refund rights to investors for immediate cash.