US Customs agency says it cannot refund illegal tariffs

U.S. Customs says it cannot comply with a court order to refund illegal tariffs. The agency filed the notice with the Court for International Trade on Friday.

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The United States Customs and Border Protection (CBP) agency has formally notified a federal court that it is unable to comply with an order to refund tariffs previously declared illegal by the Supreme Court. In a legal filing submitted on Friday to the U.S. Court for International Trade, the agency explained that it cannot fulfill the directive at this time.

APM Terminals at the Port of Los Angeles with the Port of Long Beach visible in California, United States, captured on March 4, 2026. REUTERS/Mike Blake

The filing, processed in Wilmington, Delaware, follows a high-stakes judicial process where the nation's highest court struck down the legality of specific tariff collections. Despite the court's subsequent order for the government to return the funds to affected businesses and individuals, the CBP's statement indicates a significant administrative or legal impasse in the refund process.

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