U.S. Judge Holds Closed-Door Meeting To Resolve Refunds For Illegal Trump Tariffs

A U.S. trade court judge is set to meet privately with government lawyers in an effort to establish a system for refunding billions of dollars in tariffs that were recently ruled illegal.

The meeting, described by court officials as a “settlement conference,” will focus on creating a practical method for reimbursing hundreds of thousands of companies that paid the tariffs during former President Donald Trump’s administration.

Closed-Door Conference Scheduled

Judge Richard Eaton of the U.S. Court of International Trade will hold the closed-door meeting with government attorneys on Friday morning.

The discussions will involve lawyers representing U.S. Customs and Border Protection (CBP), the federal agency responsible for collecting tariffs and now potentially responsible for issuing refunds.

Court officials confirmed that the meeting is scheduled for 10:30 a.m. Eastern Time.

While U.S. court proceedings are typically open to the public, judges sometimes hold private conferences with attorneys to discuss procedural issues, sensitive matters, or settlement arrangements.

According to the court clerk, Friday’s meeting was classified as a settlement conference, explaining why it will not be publicly accessible.

Potential Refunds Could Reach $175 Billion

The talks come after the U.S. Supreme Court struck down a broad range of tariffs imposed by Trump, ruling on February 20 that the administration had exceeded its authority.

The decision overturned a key element of Trump’s trade policy and left the government responsible for returning massive sums collected from importers.

Analysts estimate that as much as $175 billion in tariffs may need to be refunded.

However, the Supreme Court did not specify how those refunds should be handled, leaving the task to lower courts and federal agencies.

Justice Brett Kavanaugh, who dissented in the case, warned that the refund process could become a complicated “mess.”

Customs Faces Enormous Administrative Challenge

Government lawyers have already warned that implementing the refunds will be extremely complex.

Customs officials say they may need to manually review tens of millions of tariff records to determine how much each importer is owed.

The agency may ultimately have to examine around 79 million shipment records.

Such a review would represent one of the largest administrative tasks ever handled by U.S. trade authorities.

Lawsuits Filed by Thousands of Importers

The refund issue has triggered around 2,000 lawsuits from importers seeking repayment of tariffs they believe were unlawfully collected.

The meeting Friday is expected to focus on creating a single system that can resolve those claims without requiring each importer to pursue separate litigation.

Judge Eaton has made clear that he wants to avoid turning the courts into the primary mechanism for handling refunds.

Instead, he hopes the government can create an administrative solution allowing companies to claim reimbursements quickly and efficiently.

Case Began With One Company’s Lawsuit

The legal process that could determine how refunds are issued began with a lawsuit filed by Atmus Filtration Inc.

The company said it paid approximately $11 million in tariffs that were later declared illegal.

Although the lawsuit involves only one company, the judge’s decisions in the case could ultimately establish rules for the entire refund process affecting hundreds of thousands of importers.

Attorneys for Atmus have been allowed to attend the meeting remotely, according to court records.

Neither Atmus nor Customs officials responded to requests for comment about the upcoming conference.

Judge Already Ordered Refunds to Begin

Earlier this week, Judge Eaton issued a sweeping order instructing Customs and Border Protection to begin issuing refunds using its existing administrative systems.

Importantly, the order applied not just to the company that filed the lawsuit, but to all importers who paid the tariffs.

That decision effectively opened the door for a nationwide refund process.

More than 300,000 importers are believed to have paid tariffs that were later ruled unlawful.

Small Businesses Most Affected

Many of the companies waiting for refunds are small and medium-sized businesses that say the tariffs significantly increased their costs.

Business groups have urged the government to create a simple and inexpensive process for claiming refunds.

Many smaller importers worry they cannot afford the legal fees or administrative burdens required to pursue individual lawsuits.

If the process becomes too complicated, some businesses say they may abandon their claims altogether.

Friday Meeting May Set the Framework

Legal experts say Friday’s closed-door conference could result in a preliminary framework for handling refunds.

One attorney involved in other tariff-related cases told Reuters they expect the meeting to produce a system that will allow most importers to receive refunds quickly without going to court.

If successful, the agreement could dramatically simplify the resolution of thousands of pending cases.

Judge Eaton expressed confidence that Customs officials would develop a workable solution.

“I don’t believe that any of this has to be chaotic,” he said during a hearing earlier this week.

He added that the purpose of Friday’s meeting is to hear initial proposals from the customs agency on how the refund process could proceed.

Broader Legal Impact

Several companies involved in earlier tariff challenges—including VOS Selections and Learning Resources—have asked the court to consolidate their cases under Eaton’s supervision.

Those cases were among the first to challenge the tariffs and eventually reached the Supreme Court.

The court has not yet ruled on whether those lawsuits will be formally transferred.

If consolidation occurs, Eaton could become the central judge overseeing nearly all legal disputes tied to the tariff refunds.

Next Steps

If the meeting results in an agreement, the court could soon announce a formal process allowing companies to begin filing refund claims.

With tens of billions of dollars potentially at stake, the outcome will determine how quickly American businesses can recover money they say was unlawfully collected under the former president’s trade policies.