US Appeals Order to Refund Billions in Unlawful IEEPA Tariffs
The US government appealed a court order requiring refund of unlawfully collected IEEPA tariffs.
Why it matters: This case affects multinational companies facing complex tariff compliance and highlights tensions between the judiciary and regulators on sanction-related tariffs.
- Feb 20, 2026: Supreme Court ruled IEEPA tariffs were unauthorized.
- Mar 27, 2026: Court of International Trade ordered refunds for all importers who paid IEEPA tariffs.
- As of June 8, 2026, $90 billion in refund claims were accepted and $23 billion directed for refunds.
- June 11, 2026: Appeals court allowed the government to keep collecting 10% tariffs during ongoing legal challenges.
On February 20, 2026, the U.S. Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling them unauthorized. Following that, on March 4, Judge Richard K. Eaton of the U.S. Court of International Trade (CIT) ordered U.S. Customs and Border Protection (CBP) to remove those tariffs from all entries.
Subsequently, on March 27, Judge Eaton expanded his ruling to cover entries where liquidation had become final, directing CBP to refund all importers who paid the unlawful IEEPA tariffs. At that time, an estimated $166 billion in IEEPA tariffs had been collected by CBP.
However, the U.S. Department of Justice appealed this refund order. The government argued that only companies involved as parties in the relevant lawsuits should receive refunds, contesting the broader refund mandate. Judge Eaton has expressed skepticism about the government's position, noting it "may not be in the government's best interest." Meanwhile, Susan Thomas, Executive Assistant Commissioner for Trade at CBP, confirmed that teams are working intensively to manage the situation.
As of June 8, 2026, CBP had accepted refund claims amounting to $90 billion and directed the Treasury Department to issue $23 billion in refunds. Yet, complexities remain as the government continues to collect a 10% worldwide tariff imposed under Section 122 of the Trade Act of 1974 during the pendency of the appeals, following a June 11 decision by the U.S. Court of Appeals for the Federal Circuit.
This unfolding litigation and administrative effort significantly impact multinational companies, which must navigate complex compliance with evolving tariff and sanctions enforcement. The resolution of this case will clarify the scope of lawful tariff imposition and refund rights, affecting trade and regulatory strategies in the near term.
By the numbers:
- $166 billion — Total IEEPA tariffs collected before Supreme Court ruling
- $90 billion — Refund claims accepted by CBP as of June 8, 2026
- $23 billion — Refunds directed for issuance as of June 8, 2026
- 10% — Worldwide tariff rate collected during ongoing legal challenges
Yes, but: The government continues collecting the 10% tariffs while the appeal is unresolved, adding uncertainty for importers.
What's next: The appeal outcome will determine which importers qualify for refunds and the timing of payments; the 10% tariffs expire July 24, 2026.