Judge Rules Companies Entitled to Trump Tariff Refunds

Federal judge says importers can recover billions paid in now-defunct tariffs

Published on Mar. 5, 2026

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A federal judge in New York ruled that companies that paid tariffs struck down last month by the Supreme Court are due refunds. Judge Richard Eaton said "all importers of record" were "entitled to benefit" from the Supreme Court's decision to overturn the sweeping import taxes imposed by the Trump administration under the 1977 International Emergency Economic Powers Act. The ruling offers clarity on the refund process, which could ultimately cost the federal government up to $175 billion.

Why it matters

The judge's decision is a significant blow to the Trump administration's trade policies, which relied heavily on tariffs to protect American industries. The ruling opens the door for thousands of companies to recoup billions of dollars in tariffs they were forced to pay, potentially providing relief to businesses that were negatively impacted by the tariffs.

The details

Judge Eaton ruled specifically on a case brought by Atmus Filtration, a Nashville, Tennessee company that makes filters and other filtration products. At least 1,800 other companies have also filed for tariff refunds. The US Court of Appeals for the Federal Circuit recently rejected the Trump administration's attempt to slow the refund process, sending it to the New York trade court to sort out. Now, the US Customs and Border Protection agency must develop a system to process the flood of refund requests, which it was not originally designed to handle.

  • On February 20, 2026, the Supreme Court struck down the sweeping import taxes imposed by the Trump administration.
  • On March 4, 2026, Judge Eaton ruled that companies that paid the now-defunct tariffs are entitled to refunds.

The players

Judge Richard Eaton

A federal judge in the US Court of International Trade who ruled that companies are entitled to refunds for tariffs imposed by the Trump administration.

Atmus Filtration

A Nashville, Tennessee company that makes filters and other filtration products, and brought the case that led to the judge's ruling.

US Customs and Border Protection

The agency that must now develop a system to process the flood of tariff refund requests, which it was not originally designed to handle.

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What they’re saying

“all importers of record" were "entitled to benefit" from the Supreme Court's decision to overturn the sweeping import taxes”

— Judge Richard Eaton, US Court of International Trade Judge (Associated Press)

“The devil will be in the details of the administrative process.”

— Alexis Early, Trade Lawyer, Partner at Bryan Cave Leighton Paisner (Associated Press)

What’s next

The US government is expected to appeal the judge's ruling or seek a stay to buy more time for US Customs to comply with processing the refund requests.

The takeaway

The judge's decision is a major setback for the Trump administration's trade policies, forcing the government to refund billions of dollars in tariffs that were deemed unconstitutional by the Supreme Court. This ruling highlights the legal and administrative challenges the government faces in unwinding the complex web of tariffs imposed during the Trump era.