Federal Court Orders Trump Tariff Refunds

By: Paul Goldberg, Senior Correspondent | LGBT Business Finance News

NEW YORK — (March 5, 2026) — A federal judge with the U.S. Court of International Trade has ordered the U.S. government to refund duties collected under the Trump administration’s sweeping tariff program, delivering a potentially major financial reprieve for hundreds of American importers.

The ruling, issued Wednesday by Judge Richard K. Eaton, directs U.S. Customs and Border Protection to return tariff payments collected under the controversial policy, which had sharply increased import costs for businesses across multiple industries.

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The decision follows a recent U.S. Supreme Court ruling that determined former President Donald Trump lacked authority to impose the broad tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. The court concluded the statute did not provide legal justification for the sweeping import taxes placed on foreign goods.

Following the Supreme Court’s ruling, hundreds of affected companies filed legal actions seeking refunds for the duties they had already paid.

Sexual Wellness Industry Among Impacted Businesses

Several companies within the sexual wellness and adult retail sector were among the businesses impacted by the tariffs and subsequently filed legal challenges.

Among those filing complaints were Beacon Wellness Brands, International Intimates, and Kheper Games, all of which reported significant financial pressure as a result of the import taxes.

In its complaint, Kheper Games argued that additional legal action was necessary because companies had no guarantee the government would automatically refund the tariffs even after the Supreme Court ruled them unlawful.

“Although the IEEPA duties and underlying executive orders have been held unlawful by the Supreme Court, it is uncertain whether defendants will issue refunds to importers,” the company stated in its filing.

Nearly identical language appeared in the legal complaints filed by Beacon Wellness and International Intimates.

However, Judge Eaton’s ruling now requires refunds for all affected importers, regardless of whether they filed lawsuits.

Tariffs Created Financial Strain for Retailers

Industry leaders say the tariffs significantly impacted the financial performance of sexual wellness brands, particularly because many products are manufactured overseas.

Kheper Games CEO Brian Pellham told industry media that the tariffs created severe cost pressure for the company during 2025.

“We had a hard hit when we could not stop two containers from leaving China when the 135% tariffs were imposed,” Pellham said. “It took until the fourth quarter for us to recover.”

Pellham added that the company is now seeking to recover six-figure losses resulting from the tariffs.

“We strongly feel that we are owed the money back,” he said.

Beacon Wellness CEO Maria Warrington also noted that the tariffs placed considerable strain on her company’s margins.

“The company has incurred substantial tariff costs over the past year,” Warrington said. “These costs placed meaningful pressure on financial performance.”

Because sexual wellness devices face regulatory constraints and most manufacturing capacity remains concentrated in China, Warrington explained that relocating production is not currently a viable option for many companies in the industry.

“As a result, Beacon had limited options to mitigate tariffs other than negotiating cost reductions with manufacturers, raising prices, or reducing expenses,” she said.

Some Brands Planning Customer Refunds

Sexual wellness brand Dame has taken a different approach, announcing it will refund customers who paid its temporary “Trump Tariff Surcharge,” regardless of whether the company ultimately receives reimbursement from the government.

The company said it paid more than $100,000 in customs duties tied to the tariffs.

“Those tariffs increased our import costs significantly,” the company stated on its website. “Even if the government does not issue refunds quickly, we believe customers should not bear the burden of those charges.”

Administration May Appeal Ruling

Despite the ruling, the issue may not be fully settled. The Trump administration is widely expected to appeal the decision or seek a temporary stay while the legal battle continues.

In response to the Supreme Court’s earlier decision, Trump officials attempted to implement a workaround by invoking provisions under the Trade Act of 1974, which allows temporary tariffs for up to 150 days without congressional approval.

The administration has already imposed a 10% global tariff under that authority and has floated plans to raise the rate to 15%, potentially extending trade tensions for import-dependent industries.

For businesses across the United States — including companies in the rapidly growing sexual wellness and specialty retail sectors — the latest court ruling could determine whether millions of dollars in tariff payments are ultimately returned.

For continuing coverage of international trade policy, retail market shifts, and financial developments impacting the sexual wellness industry, stay with JRL CHARTS LGBT Business Finance News.