Trump Administration, Trade Court Clash Over Tariff Refunds as $20.6B Flows to Importers

The Trump administration and the U.S. Court of International Trade are locked in a standoff over tariff refunds, with $20.6 billion already directed to importers and $85 billion in claims filed. Judge Richard Eaton has ordered Customs and Border Protection chief Rodney Scott to appear on June 3, 2026, amid disputes over whether all importers are entitled to refunds after the Supreme Court ruled IEEPA tariffs illegal in February. The government has paid out $20.6 billion of an estimated $166 billion collected, but now argues that $39 billion in "finally liquidated" entries are ineligible unless companies sue. Only $127 billion is deemed eligible under Phase 1 of the refund program. Trade lawyers are advising importers to file both refund applications and legal protections for unrefunded amounts. The clash has raised uncertainty for businesses. Erik Smithweiss of GDLSK called the judge's summons "not normal business," while Sidley Austin's Ted Murphy urged a "belt and suspenders" approach to secure refunds.