Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.

US Customs and Border Protection has informed a federal judge it is unable to refund over $150 billion in tariffs collected under President Donald Trump’s trade policy.

Some shit you should know before you dig in: In case you missed it, last week the Supreme Court ruled against President Trump’s global tariffs, finding in a 6–3 decision that his use of the International Emergency Economic Powers Act (IEEPA) to impose them exceeded his constitutional authority. Critics argued that Trump’s tariffs were essentially an unconstitutional tax on Americans that was not authorized by Congress. The justices determined that IEEPA, a 1977 law designed to allow presidents to regulate economic transactions during national emergencies, does not authorize the executive branch to levy tariffs, a power the Constitution assigns to Congress. The ruling declared the IEEPA-based tariffs and fees collected under them unconstitutional. Despite this, President Trump has since reimposed global tariffs under a different statutory authority, arguing that this alternative legal mechanism is well established, battle-tested, and fully legitimate.

What’s going on now: In court filings, CBP said it cannot immediately comply with a federal trade court order requiring the government to refund tariffs due to the unprecedented scale of the task and limitations in its current technology and administrative systems. The agency said the refunds would involve more than 53 million import entries from over 330,000 importers, a volume it says its existing systems were not designed to process. According to government lawyers, attempting to issue refunds immediately would require extensive manual work, potentially diverting personnel from trade enforcement and national security responsibilities.

CBP requested the court allow it approximately 45 days to modify its systems so they can process the refunds more efficiently. According to CBP, updating the system would make it possible to handle the massive volume of refunds and associated interest payments in a more manageable way.

As of the latest filings and hearings, Judge Richard Eaton (who is hearing arguments related to refunds) has not formally ruled on the specific 45-day timeline requested by CBP. More to come.