A Judge Urged the Trump (R) Administration to Back-Off its Appeal of His Order to Fully Refund $166 Billion in Tariffs Overturned by the Supreme Court, saying it was Unnecessary and would only Create more Delays for Importers to get their Money Back. Customs and Border Protection (CBP) has been Processing Billions of Dollars in Refund Claims through a New Online Portal for more than a Month, yet a Sticking Point has emerged over how to handle Tariff Payments that the Government contends are Final and therefore can’t be Reimbursed without a Court Order for each Affected Importer.
At a Packed Hearing on 6/9/2026 in the U.S. Court of International Trade (CIT), a Customs Official Confirmed for the First Time, that the gGvernment believes about $11.4 Billion is at Issue. A Justice Department (DOJ) Lawyer later put the Figure at about $10 Billion, suggesting the Dispute is Narrow. “Even I think that’s real money,” Judge Richard Eaton Shot-Back in His Packed Manhattan Courtroom as many in Attendance laughed.
Eaton heard Arguments for more than an hour, on whether He should Lift a Freeze He placed on His 3/2026 Order requiring that Customs Repay All Affected Importers, a Freeze He put in place, with the Understanding that the Government Intended to Repay All Importers but Needed Time to Develop the Portal, particularly for Processing more Complex Entries. Yet the Trump administration earlier this month appealed Eaton’s order, even as it continued the refund process. At the heart of the dispute is whether a judge has authority to Order Refunds Nationwide, even if Importers did Not File Suit in the Trade Court. The Government argues Eaton Cannot do so, because the Supreme Court Struck Down the Use of so-called Universal Injunctions.
The Government also Argues it Cannot Refund Final Tariff Payments without a Court Order, because there is No Statutory Authority for CBP to Reopen Final Tariffs. The Lawyer for the Plaintiffs Argued that Theory is an Incorrect Interpretation of the Law. The Dispute is the Latest Fallout over the Supreme Court’s Ruling that Trump did Not have Authority to Issue Tariffs under the International Emergency Economic Powers Act (IEEPA). The Resulting Legal Fight over Refunds, Prompted Customs to create the New Online Portal.
CBP Executive Assistant Commissioner Susan Thomas (I) took the Witness Stand to Answer Eaton’s Questions at the Hearing. Eaton said He wanted to Question Her directly, since hH believed that, in this Case, the DOJ sometimes push their Legal Posture “beyond what is useful for the client” and that He believes Customs wants to Repay everyPpenny.
Thomas said that CBP is Preparing to Repay the Importers Affected by the Appeal, should doing so become Necessary. She Testified that about $23 billion in Refunds have been sent to Treasury, to be Paid-Out so far, with another $480 Million coming this week. She said the Refund Issue is a “historic, unprecedented challenge” for the Agency. Eaton Repeatedly suggested that the Trump Administration should Drop its Appeal, Arguing it got in the way of the Government’s Plan to Repay All I. He suggested some Members of the Public might Think the Government was trying to Keep some of the Money it Collected Improperly.
“My appeal to you is to withdraw your appeal,” Eaton told the Government Lawyers. “You win nothing if the Court of Appeals says my order is unlawful.” Sara Albrecht, Chief Executive Officer of Liberty Justice Center, One of the Groups involved in the Litigation, said after the Hearing that She’s Pleased with How Customs has Addressed “seriousness of these issues” but said All of the Money needs to be Returned.
“Most of these entries are from small businesses that are the backbone of our country,” She said. “They’ve effectively had to loan this money to the government for the last year. They just want it back and they want to get back to running their businesses.”
The case is V.O.S. Selections v. United States, 25-cv-66, U.S.Court of International Trade (NY).

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