A judge gave the Trump administration time to build a system to streamline tariff refunds, but pointed out that the “clock is ticking” and U.S. taxpayers will pay the cost of delays.
Customs and Border Protection requested 45 days to develop a system for issuing refunds for President Donald Trump’s tariffs, which were imposed under the International Emergency Economic Powers Act. Last month, the U.S. Supreme Court invalidated the tariffs, ruling that the law did not grant the president authority to impose tariffs.
U.S. Court of International Trade Judge Richard Eaton told CBP that he wants an update on the progress of its refund on Thursday.
“These duties must now be refunded with interest, and the clock is ticking,” Eaton wrote in the order.
He said delays would cost American taxpayers.
“Further interest is accumulating every day, with approximately $650 million accruing per month. If the entries are not liquidated before the end of the year, it is further estimated that $10 billion of interest will have accrued,” the judge wrote. “American taxpayers will bear this financial burden.”
CBP said it collected more than $166 billion in invalid tariffs from more than 330,000 importers.
Following the Supreme Court decision, President Donald Trump introduced a new global tariff under Section 122 of the Trade Act of 1974. According to the administration, this provision allows the president to impose tariffs of up to 15% for a maximum of 150 days to address significant international payments issues.
Since the Supreme Court ruling, Trump has relied on alternative legal authorities to impose a 10% global tariff on imports, with certain exceptions.
The president is trying to salvage trade agreements with foreign nations made last year, following his April 2025 announcement of reciprocal tariffs on every U.S. trading partner. Tariffs have become a central policy focus of Trump’s second term in office.
Trump is working to re-establish tariff barriers through alternative legal avenues, including trade investigations under Section 301.
Trump has continued to use tariffs as a tool to advance key campaign promises since returning to the White House in 2025, including a proposed $2,000 tariff rebate for most Americans. He has said that tariff revenues could fund increased military spending, replace income taxes, and help reduce the federal government’s $38.7 trillion debt. Experts have said that tariff revenues are unlikely to fully cover the costs of any of these initiatives.