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Companies in the U.S. that paid tariffs that were later struck down by the U.S. Supreme Court are legally entitled to refunds, a federal judge ruled on Wednesday.

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In his decision, Judge Richard Eaton of the U.S. Court of International Trade in New York said all importers who paid those duties are “entitled to the benefit” of the top court’s decision.

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The judge was ruling specifically on a case brought by Atmus Filtration, a company in Tennessee, but said he will be the only judge to hear cases about refunds.

More than 1,000 companies, including Costco and FedEx, have filed lawsuits in the U.S. Court of International Trade in an effort to recover tariff costs.

Supreme Court ruled against tariffs last month

On Feb. 20, the U.S. Supreme Court struck down President Donald Trump’s sweeping tariffs on nearly every country, which he imposed under a federal emergency powers law.

The high court judges ruled 6-3 that Trump overstepped his authority by using the International Emergency Economic Powers Act (IEEPA), a sanctions law, to impose tariffs on imported goods.

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The Supreme Court decision did not address the issue of refunds, which is worth an estimated $175 billion based on calculations by the Penn Wharton Budget Model.

Up until the end of 2025, U.S. Customs and Border Protection data showed that the federal government had collected $134 billion in duties under the IEEPA.

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‘Victory for small businesses’

We Pay the Tariffs, a coalition of small businesses affected by the tariffs, said the ruling clearly shows all importers of record hit by IEEPA duties are entitled to refunds.

“This is a victory for small businesses who have paid billions in unlawful tariffs and deserve their money back,” Dan Anthony, executive director of We Pay the Tariffs, said in a statement. “The court acted swiftly and correctly. Now the ball is in the government’s court and small businesses are concerned they will drag this out further.”

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The White House has yet to respond to Eaton’s ruling.

‘Validated’ refunds expected to include interest

In a court filing before the decision, however, the Trump administration indicated interest would be included if refunds are ordered.

Brandon Lord, a senior official in U.S. Customs and Border Protection’s trade office, wrote that “any validated refund of IEEPA duties would include interest.”

Lord indicated refunds could take time because the department “still requires a review period to ensure no violation of other customs laws and no other duties, taxes or fees are owed.”

Some Canadian companies will be waiting on refunds but Canada had largely been shielded by the IEEPA tariffs due to a carveout under the Canada-U.S.-Mexico Agreement on trade.

— With files from the Associated Press.

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