CBP Refuses Court Order to Refund $166 Billion From President Donald Trump's Illegal Tariffs

The Supreme Court struck down President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs.

“CBP asks judge for more time to work on tariff refunds The agency is "facing an unprecedented volume of refunds," an official says”

ABC News

A U.S. Court of International Trade judge ordered U.S. Customs and Border Protection (CBP) to begin removing those IEEPA duties from import entries and to issue refunds with interest.

ABC News

CBP said it cannot immediately comply, calling the volume and complexity of refunds "unprecedented" and noting roughly $166 billion in collected IEEPA duties tied to more than 53 million entry records filed by about 330,000 importers.

The legal background — a 6–3 Supreme Court decision and subsequent refund suits by importers — frames the court order and CBP’s refusal to process immediate, entry-level reimbursements.

CBP detailed concrete operational and technical constraints it says prevent immediate refunds.

Its Automated Commercial Environment (ACE) finalizes entries automatically and cannot currently single out IEEPA charges.

Al Jazeera

ACE has processing limits that make entry-by-entry fixes infeasible, and manual liquidation and recalculation would require millions of staff hours.

The agency estimated roughly 4.4 million man‑hours to process the work manually.

It warned that reallocating that labor would harm trade‑fraud detection and national‑security screening.

CBP noted that only a small fraction of payers are set up for electronic refunds, complicating payout mechanics.

As an alternative to issuing tens of millions of individual refunds, CBP is developing a consolidated, automated refund process that would aggregate IEEPA liabilities and interest on an importer basis, reduce paperwork, and require only limited submissions from importers.

“CBP is preparing a simplified system to process about $166 billion in unlawful tariff refunds within 45 days after a March 4, 2026 order from Judge Richard Eaton of the U”

avandatimes

CBP and Treasury proposed letting importers submit totals so the government can process aggregated refunds rather than paying each of roughly 53 million entry-level charges.

The agency says the necessary ACE reprogramming and streamlined portal could be ready in about 45 days.

The court and litigants pressed on timing and legal compliance.

Judge Richard Eaton initially ordered entries to be liquidated without the IEEPA duties, but after CBP’s filing he paused the order to the extent immediate compliance was required while the agency builds its plan.

Bloomberg Law News

Importers have filed thousands of suits seeking refunds, and administration officials suggested they may litigate aspects of the refund process, a dynamic that could further delay payouts even after CBP’s systems are updated.

For importers and trade stakeholders the outcome remains uncertain.

CBP says automation will reduce millions of manual hours and allow aggregated refunds.

CityNews Halifax

Many practical hurdles remain: electronic enrollment for payments is incomplete and ACE liquidation schedules continue to create rollover work.

Interest calculations and audit/review windows will have to be reconciled before money moves.

Multiple outlets caution that refunds are likely but not immediate, and the exact timing depends on CBP’s technical fixes, court approval, and potential further litigation.