On March 6, 2026, U.S. Customs and Border Protection (CBP) informed Court of International Trade Judge Richard Eaton that it cannot currently comply with a court order to refund reciprocal tariffs imposed last year by President Donald Trump, which the Supreme Court recently ruled are illegal [1]. CBP disclosed in a court filing that the total amount of IEEPA tariffs collected, including estimated duty deposits, is approximately $166 billion as of Wednesday [1]. More than 330,000 importers have made over 53 million entries subject to these tariffs, according to Brandon Lord, executive director of CBP's trade programs directorate [1].
Judge Eaton ordered CBP to calculate the cost of bringing shipments into the United States without assessing a tariff and instructed the agency to refund importers who paid the IEEPA tariffs, with interest [1]. Eaton emphasized during the hearing that CBP routinely processes refunds and should be able to handle the task: "Customs knows how to do this. They do it every day. They liquidate entries and make refunds" [1].
However, CBP stated in its filing that its current technology and administrative procedures are not equipped to handle the unprecedented volume of refunds required by the court order. The agency indicated that manual work would be necessary, which could hinder its ability to fully carry out its trade enforcement mission [1].
The refund order stems from lawsuits filed by importers, including Atmus Filtration, seeking repayment of tariffs paid since last year that were deemed illegal. Eaton's order applies to every duty paid in connection with the IEEPA tariffs [1].
CONCLUSION
CBP's inability to comply with the court-ordered refunds of $166 billion in illegal Trump tariffs presents significant operational and financial challenges. The scale of the refunds and the agency's technological limitations suggest potential delays and disruptions in trade enforcement. This development is likely to have a high market impact, especially for affected importers.