Trade court orders tariff refunds in setback for Trump administration

March 5, 2026

A federal trade court judge has ordered U.S. Customs and Border Protection to provide tariff refunds to businesses that paid levies under emergency powers, which the Supreme Court invalidated last month. The ruling applies broadly to all importers who paid these duties, representing a significant defeat for the Trump administration, which collected approximately $130 billion through these tariffs and has expressed opposition to issuing refunds. While the payment mechanism remains unclear, the decision came from a case filed by Tennessee-based Atmus Filtration, though the same judge will oversee all related refund cases.

Who is affected

Thousands of businesses that paid tariffs under the International Emergency Economic Powers Act (IEEPA)
Atmus Filtration (Tennessee filtration company that brought the initial case)
FedEx and other companies that have filed lawsuits seeking refunds
Small businesses represented by the coalition "We Pay the Tariffs"
All importers of record whose entries were subject to IEEPA duties
U.S. Customs and Border Protection (ordered to issue refunds)
The Trump administration
U.S. Treasury Secretary Scott Bessent

What action is being taken

The US Court of International Trade has ordered Customs and Border Protection to issue refunds for IEEPA tariffs
Companies including FedEx are filing lawsuits seeking full refunds
The administration is facing growing claims from firms seeking refunds
The U.S. is moving to implement a 15% global tariff to replace the struck-down IEEPA tariffs

Why it matters

This ruling represents a significant financial and policy setback for the Trump administration, affecting approximately $130 billion in collected tariffs. The decision establishes that thousands of businesses are entitled to refunds for duties that were determined to be unlawfully imposed, potentially creating a substantial financial liability for the government. The case also highlights the limits of presidential emergency powers in trade policy and sets a precedent for how similar tariff disputes will be resolved, since all refund cases will be heard by the same judge.

What's next

The U.S. Treasury Secretary indicated the administration is "likely" to implement a 15% global tariff this week to replace the invalidated IEEPA tariffs. Trade negotiations continue as countries work to secure lower tariff rates in exchange for investment promises and other changes.

Read full article from source: BBC