Trump tariffs setback: US Customs says it can’t refund $166 billion after court ruling

US Customs and Border Protection (CBP) has told the United States Court of International Trade that it is currently unable to comply with an order directing the agency to begin refunding tariffs imposed last year by Donald Trump, after the levies were ruled illegal by the Supreme Court of the United States. 

In a court filing on March 6, CBP said the total amount of tariffs collected under the International Emergency Economic Powers Act (IEEPA), along with related estimated duty deposits, is “approximately $166 billion” as of Tuesday. 

Earlier this week, the trade court ordered the agency to issue refunds to importers affected by the duties. The court said companies that paid the tariffs were entitled to the benefit of the Supreme Court’s ruling that struck down the levies. 

“All importers of record whose entries were subject to IEEPA duties are entitled to the benefit,” Eaton wrote in the ruling. 

However, the process of issuing refunds remains unclear, and CBP indicated it does not yet have the ability to implement the order. 

The decision represents a setback for Trump, who had sought to replace the disputed import taxes and has previously criticised the possibility that the government may have to return billions of dollars collected through the tariffs. 

US Treasury Secretary Scott Bessent said the administration was “likely” to introduce a new 15% global tariff, up from 10%, in the coming days. The proposed tariff is intended to replace the IEEPA-based duties invalidated by the court. 

According to government estimates, the Trump administration collected roughly $130 billion through tariffs imposed on most imported goods using the emergency powers law. 

Several companies have already filed lawsuits seeking refunds, including logistics giant FedEx, as businesses push to recover money paid under the now-invalid tariffs. 

The tariffs were first introduced in April 2025 as part of what Trump called “Liberation Day” tariffs, targeting dozens of countries. Rates started at 10% and climbed to as high as 50% in some cases, triggering a wave of trade negotiations as governments sought lower duties in exchange for investment commitments and policy changes. 

In February 2026, the Supreme Court struck down those tariffs as well as earlier levies imposed on imports from China, Mexico, and Canada, ruling that the administration had improperly used emergency powers to justify the measures.