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A federal judge ruled Wednesday that US companies that paid tariffs invalidated by the Supreme Court in February are legally entitled to refunds.

Judge Richard Eaton of the US Court of International Trade in New York said importers were "entitled to benefit" from the high court's Feb. 20 decision, which found that President Donald Trump lacked authority to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA).

Eaton was hearing a case brought by Atmus Filtration, a Nashville-based company producing filters and related products, seeking reimbursement for tariffs it paid.

"All importers of record are entitled to benefit from the Supreme Court's decision," Eaton wrote, adding that he alone "will hear cases pertaining to the refund of IEEPA duties."

The Supreme Court's ruling did not address refunds, leaving the federal court to clarify the process.

The ruling follows a separate federal appeals court decision earlier this week that declined to delay the Supreme Court ruling.

That decision cleared the way for Eaton's court to begin handling refund claims.

Trade experts estimate that the government could owe as much as $175 billion, based on data showing $134 billion in IEEPA duties collected through 2025, AP News reported.

"This is a great decision for importers and consumers who paid," said Barry Appleton, law professor and co-director of New York Law School's Center for International Law.

"It will make customs brokers busy. It should make things easier for the courts — and get a process underway for those importers who paid within the last 180 days."

US Businesses Eligible for IEEPA Tariff Refunds

The US Customs and Border Protection agency now faces the challenge of processing refunds. "The devil will be in the details of the administrative process," said trade lawyer Alexis Early. While Customs routinely refunds tariffs in cases of error, it was "not designed for a mass refund."

Several major companies, including Bausch & Lomb, Dyson, FedEx, and L'Oreal, have filed lawsuits seeking refunds of IEEPA tariffs. FedEx also pledged to return charges to customers if it is reimbursed by the government.

According to CBS News, a coalition of small businesses praised Eaton's ruling. "This is a victory for small businesses who have paid billions in unlawful tariffs and deserve their money back," said Dan Anthony, executive director of We Pay the Tariffs.

"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."

Under US Customs rules, goods undergo a "liquidation" process where final duties are calculated.

Eaton ordered that tariffs invalidated by the Supreme Court must no longer be collected during this process, and any finalized duties must be recalculated without the IEEPA tariffs.

Trade lawyer Ryan Majerus expects the government to appeal or "seek a stay to buy more time for US Customs to comply."

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