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A rapidly expanding wave of lawsuits over import duties gained new momentum this week as courts began shaping the aftermath of the Supreme Court ruling on tariff refunds, setting the stage for what could become one of the largest repayment battles in U.S. trade history.

Two pivotal decisions delivered within days of each other have emboldened companies seeking reimbursement for tariffs imposed during President Donald Trump’s latest administration, while also signaling that the legal war over refunds is only just beginning.

Courts Push Back Against Delay Tactics

The legal momentum began Monday when a federal court rejected a request from the Justice Department to freeze proceedings for 90 days. Instead, the court reaffirmed that the U.S. Court of International Trade would remain the primary venue for lawsuits seeking refunds.

The decision effectively kept the floodgates open for businesses challenging tariffs that had been imposed under the 1977 International Emergency Economic Powers Act (IEEPA).

Judge Orders Government to Issue Refunds

The drama escalated Wednesday when the Manhattan-based trade court moved swiftly.

Senior Judge Richard Eaton issued an order instructing the federal government to begin refunding tariffs deemed unlawfully collected. Although the ruling responded to a single lawsuit filed by a filtration company, its language carried sweeping implications.

Eaton wrote that “all importers of record” are entitled to the same benefit, directing U.S. Customs and Border Protection to process refunds accordingly.

The judge also declared that he would serve as the sole jurist overseeing refund cases moving forward, consolidating authority over the growing wave of legal challenges.

A Rapid Turnaround in the Legal Fight

The twin rulings represent a striking shift in the dispute. Just days earlier, the Trump administration had attempted to place the entire tariff refund debate on hold for three months.

Instead, the courts signaled that the issue would move forward — and quickly.

The legal clash stems from up to $175 billion in sweeping tariffs imposed since Trump returned to office last year. The administration relied on the IEEPA statute to justify the duties, citing national economic security concerns.

But last month, the Supreme Court ruled 6–3 that those tariffs were unlawful. While the decision invalidated the tariffs, the majority opinion stopped short of directly addressing whether businesses must be repaid.

That omission left a massive question hanging in the air: who gets their money back — and how?