The Trump administration announced Friday it plans to appeal a federal court order that would allow all companies to seek refunds for tariffs ruled unconstitutional by the U.S. Supreme Court, potentially halting a refund process that has already returned billions to businesses.

The Supreme Court ruled in February that former President Donald Trump lacked constitutional authority to impose higher import taxes on goods from nearly every other country. Since then, U.S. Customs and Border Protection has been processing refunds through an online system that began accepting applications in late April.

As of May 22, applications for refunds totaling $85 billion had been accepted for processing, representing more than half of the estimated $166 billion owed to companies. CBP reported it had directed the Treasury Department to issue $20.6 billion in refunds, with the first payments reaching businesses on May 12.

The administration's appeal targets a March ruling by Judge Richard K. Eaton of the U.S. Court of International Trade, who determined that all importers were entitled to refunds, not just those who filed lawsuits. Justice Department lawyers argued the judge exceeded his authority with this "universal injunction" and said CBP would continue processing refunds for the 485 pending trade court cases.

Judge Eaton has scheduled a June 9 hearing and demanded CBP Commissioner Rodney Scott appear to explain the timeline for repaying all 330,000 potentially eligible importers. The administration objected, requesting that deputies appear instead and arguing Scott cannot be compelled to testify as a high-ranking presidential appointee.

Businesses have reported mixed experiences with the refund process. Walmart announced plans to implement price cuts with its refunds, while toy company Basic Fun CEO Jay Foreman said he received $450,000 initially but called subsequent payments a "total slow roll." Some smaller companies indicated they would use refunds to pay remaining tariffs or reduce debt accumulated during the uncertainty period.