A federal trade court has temporarily suspended a previous order that required U.S. Customs and Border Protection (CBP) to begin immediately refunding billions of dollars in tariff payments collected under President Donald Trump’s trade policies. The decision by the U.S. Court of International Trade came hours after the administration said it could not start the refunds right away, according to reporting by Reuters.
The dispute stems from a February ruling by the Supreme Court of the United States that found the tariffs were imposed without proper legal authority. The Court ruled that Trump lacked the authority to use the International Emergency Economic Powers Act to impose sweeping tariffs on imported goods. Because the tariffs were deemed unlawful, the federal government must return the money collected.
However, CBP officials say the scale of the refunds presents a significant logistical challenge.
In a court filing, CBP official Brandon Lord wrote that the agency is facing “an unprecedented volume of refunds.” According to the filing, roughly 300,000 importers made about 53 million individual tariff payments totaling approximately $166 billion since the tariffs were enacted last year.
“CBP has never been ordered to, nor has it attempted to, process a volume of refunds anywhere near the volume,” Lord wrote.
Lord said the agency’s current systems are not designed to handle such a massive reimbursement effort. He noted that “existing administrative procedures and technology” are poorly suited to the task and warned that redirecting staff to process refunds could affect other operations.
“The amount of time it would take will prevent personnel from fully carrying out the agency’s trade enforcement mission,” Lord wrote. “Personnel would be redirected from responsibilities that serve to mitigate imminent threats to national security and economic security.”
Rather than refusing to process refunds, CBP proposed a new approach. Under the plan outlined in the filing, the agency would add new “functionality” to its systems allowing companies that imported goods into the United States to submit the total tariffs they paid. The government would then review those submissions and process refunds accordingly.
Lord said the new system could be ready within 45 days, although the filing did not estimate how long it would take to complete all payments once the process begins.
Several legal groups have been pursuing lawsuits to ensure the government repays the tariffs. Among them is the Liberty Justice Center, which filed a case in April 2025 seeking refunds for affected businesses.
“Liberty Justice Center won … on behalf of our five clients and all American businesses that have had to pay illegal, unjust and unconstitutional tariffs, but the fight isn’t over,” said Sara Albrecht, chair of the organization. “Now we are asking the courts to ensure the government honors its commitments and refunds American businesses.”
Although the tariffs were widely criticized for raising prices for American consumers, individuals are generally not expected to receive refunds directly. The tariffs were paid by importing companies, which then passed those costs through the supply chain to retailers and ultimately to shoppers.
Some companies have indicated they may return refunded tariff money to customers. Businesses including FedEx and Costco have said they plan to distribute any refunds they receive back to consumers.
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