Judge orders US to start issuing $130B in tariff refunds

States challenge Trump's new 10% global tariffs as legal battle over tariffs continues

Published on Mar. 5, 2026

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A federal judge ruled that the US government must begin paying out more than $130 billion in tariff refunds to US businesses, marking another setback for the Trump administration after the Supreme Court struck down the president's wide-reaching tariffs. Meanwhile, a group of states is seeking to challenge Trump's new 10% global tariffs in court, arguing he lacks the power to reinstate them.

Why it matters

The ruling on tariff refunds and the legal challenge to Trump's new tariffs underscore the ongoing uncertainty and turmoil surrounding the administration's trade policies. The refund process could take years to play out, while the new tariffs face an uphill legal battle, leaving businesses in limbo.

The details

The judge's order suggested that all importers subjected to the now-invalidated tariffs would be entitled to refunds, including those that haven't filed lawsuits yet. Over 2,000 companies have filed lawsuits seeking to recoup costs from the illegal tariffs. Meanwhile, a group of states is seeking to challenge Trump's new 10% global tariffs under Section 122 of the Trade Act of 1974, arguing the president lacks the power to reinstate tariffs after the Supreme Court struck down his previous ones.

  • The judge's ruling on tariff refunds was issued on Wednesday.
  • The Supreme Court struck down Trump's wide-reaching tariffs at the end of February.
  • The new 10% global tariffs under Section 122 could go up to 15% 'sometime this week', according to Treasury Secretary Scott Bessent.

The players

Judge Richard Eaton

A federal judge who ruled that the US government must begin paying out more than $130 billion in tariff refunds to US businesses.

Scott Bessent

The US Treasury Secretary who said the new 10% global tariffs could go up to 15% 'sometime this week'.

Group of states

A group of states that is seeking to challenge Trump's new 10% global tariffs in court, arguing he lacks the power to reinstate them.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, Grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.