U.S. federal trade judge orders Trump administration to stop calculating IEEPA tariffs on importers

# Bao Yilong

Source: Wall Street CN

Judge Richard Eaton of the U.S. Court of International Trade has ordered U.S. Customs and Border Protection (CBP) to immediately cease calculating tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in importers’ customs clearance documents. He also questioned why the government continues this practice despite the Supreme Court having ruled these tariffs unlawful. Judge Eaton ordered a recalculation of relevant tariffs for which this step has already been completed and confirmed his designation to consolidate and hear thousands of pending refund lawsuits currently before the trade court.

Following the U.S. Supreme Court’s ruling that Trump’s emergency tariffs are illegal, the refund process is accelerating through the judicial system.

On Wednesday, March 4, Judge Richard Eaton of the U.S. Court of International Trade ordered CBP to immediately stop computing tariffs levied by former President Trump under the IEEPA in importers’ clearance filings. He further challenged the government’s continuation of the practice in light of the Supreme Court’s finding of illegality.

Judge Eaton directed that relevant tariffs already subject to this calculation be recalculated and confirmed his assignment to consolidate and adjudicate the thousands of refund lawsuits pending in the trade court.

During the hearing, Eaton stated unequivocally that “the law is settled” and that the refund process can proceed “relatively smoothly,” emphasizing that “every penny of IEEPA tariffs must be refunded.”

He rejected the U.S. Department of Justice’s (DOJ) motion for a stay of his order and required the DOJ to provide further details on the specific refund arrangements by this Friday.

Wall Street CN reported that last month the U.S. Supreme Court ruled 6-3 that Trump’s invocation of the IEEPA to impose so-called “reciprocal tariffs” on imported goods was unlawful.

Since the ruling, significant uncertainty has persisted in the market regarding when and how importers would receive refunds. According to prior court filings by the U.S. government, hundreds of thousands of importers have paid the disputed tariffs.

## Tariff Liquidation Procedures at the Core of Dispute

Wednesday’s hearing and order stem from a lawsuit by U.S. filter manufacturer Atmus Filtration seeking approximately $11 million in IEEPA tariff refunds.

The case quickly garnered widespread attention, however, as it touched on the critical issue of how tariff documentation should be processed following the Supreme Court’s ruling.

The dispute centers on CBP’s “liquidation” process—a procedure whereby estimated duties previously paid by importers are formally calculated and finalized.

During the hearing, DOJ attorney Claudia Burke acknowledged that CBP continues to include IEEPA tariffs in the liquidation process, which would complicate the refund process for affected importers.

A clear divide emerged between Judge Eaton and the DOJ during the proceedings. The judge stated emphatically:

> Every penny of IEEPA tariffs must be refunded. The Supreme Court has told you what your position is—and your position is to return that money.

Burke countered that the refund process requires time, as government agencies affected by the Supreme Court ruling have not yet finalized their positions on next steps.

She also stated that the government’s position is not that “every importer will receive a refund,” noting that some importers may still need to file individual claims with the trade court.

Judge Eaton rejected the DOJ’s motion to stay his order from the bench and scheduled a follow‑up hearing for Friday morning, at which the DOJ will be required to provide more detailed explanations of the specific refund process arrangements.

## Massive Refund Scale, Interest to Be Paid

Over 2,000 refund lawsuits are currently pending in the U.S. Court of International Trade, the vast majority filed after the Supreme Court heard oral arguments last November.

Pratik Shah, lead counsel for Learning Resources—which prevailed in the Supreme Court case—stated:

> This order confirms what should have been obvious following the Supreme Court’s ruling: everyone who paid IEEPA tariffs is entitled to a refund.

Additionally, earlier Wednesday, the U.S. government confirmed in a written filing to Judge Eaton that it will pay interest on any amounts ultimately required to be refunded.

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