Trending Now - States Collaborate on Tariff Refunds Amid Ongoing Delays

WHO:

President Trump

Judge Richard Eaton, U.S. Court of International Trade

Ryan Majerus, trade lawyer at King & Spalding

Scott Lincicome, vice president of general economics at the Cato Institute

Wilbur Ross, former Commerce Secretary

Dan Rayfield, Oregon Attorney General

Letitia James, New York Attorney General

William Tong, Connecticut Attorney General

Brandon Lord, executive director of U.S. Customs and Border Protection (CBP)

Over 330,000 importers

Democratic attorneys general from Oregon, Arizona, California, New York, and other states

WHAT:

A federal judge ruled that companies that paid tariffs imposed by Trump are entitled to refunds.

The Supreme Court struck down tariffs imposed by Trump under the International Emergency Economic Powers Act (IEEPA) on February 20, 2026.

The federal government is estimated to owe up to $175 billion in tariff refunds.

The U.S. Court of Appeals for the Federal Circuit denied the Trump administration's request to delay the refund process.

The CBP is working on a new system to process refunds, expected to be ready in 45 days.

The new tariffs imposed under Section 122 of the Trade Act of 1974 are being challenged by 24 states.

The states argue that the tariffs violate the Constitution's separation of powers principle.

WHERE:

U.S. Court of International Trade, New York

Washington, D.C.

Nashville, Tennessee (Atmus Filtration)

WHEN:

Ruling by Judge Richard Eaton on March 4, 2026

Supreme Court decision on February 20, 2026

Lawsuit filed by states on March 5, 2026

CBP expects the new refund process to be ready in 45 days from March 4, 2026

WHY:

The Supreme Court ruling deemed the tariffs imposed under IEEPA unlawful, prompting the need for refunds.

The states argue that Trump is overstepping his authority with the new tariffs, which they claim are not justified under Section 122.

HOW:

Refunds will be processed through a new automated system being developed by CBP, which will require minimal submission from importers.

The states' lawsuit seeks to halt the new tariffs and demand refunds for costs incurred while the tariffs were in effect.

In a significant ruling on March 4, 2026, Judge Richard Eaton of the U.S. Court of International Trade determined that companies that paid tariffs imposed by Trump are entitled to refunds, following a Supreme Court decision that struck down those tariffs as unlawful on February 20. The federal government now faces an estimated obligation of up to $175 billion in refunds, and the U.S. Court of Appeals for the Federal Circuit has denied the Trump administration's request to delay this refund process. Meanwhile, the U.S. Customs and Border Protection is developing a new automated system to process these refunds, which is expected to be ready in 45 days. On March 5, 2026, a coalition of states, including Oregon and New York, filed a lawsuit challenging new tariffs imposed under Section 122 of the Trade Act of 1974, arguing they violate the Constitution's separation of powers. The states are seeking to halt these tariffs and demand refunds for costs incurred while the previous tariffs were in effect.