The Trump administration said it plans to appeal a federal court order that would allow all importers who paid the now-repealed tariffs to seek refunds, a move that could slow or partially halt a multibillion-dollar reimbursement process already underway.Businesses across the United States have already begun receiving refunds after the US Supreme Court ruled that President Donald Trump lacked the constitutional authority to impose higher import duties on goods from almost every country.The ruling opened the door for companies to recover payments collected under the disputed tariff system.According to US Customs and Border Protection (CBP), refunds began arriving in the bank accounts of successful applicants on May 12, roughly three weeks after importers were allowed to file claims through an online system.As of May 22, about $85 billion in applications had been accepted for processing, while $20.6 billion had already been directed for payment, CBP said in a legal filing cited by the Associated Press news agency.
A legal battle over who is eligible for a refund
The latest dispute centers around a ruling by a federal judge that not only the companies that filed the lawsuits, but all registered importers who paid the invalid tariffs, should be eligible for refunds.The Trump administration objected to this broader interpretation and informed the court on Friday that it intends to appeal.
Justice Department lawyers also argued that U.S. Customs and Border Protection Commissioner Rodney Scott should not be forced to testify in court, and requested that representatives attend instead, citing his status as a presidential appointee.They also claimed that the court exceeded its authority in extending refunds to all importers, describing it as a “global injunction.”However, Judge Richard K. Eaton emphasized the scale of the case, writing: “This case involves $166 billion,” and added that the remedy for illegal collection is to return the fees collected by the government.
Businesses are waiting for clarity as payments continue
Before the appeal was announced, the refund mechanism had been working relatively smoothly, with early payments already reaching companies.Some large retail chains have indicated that refunds could eventually be used to reduce prices on selected items, while smaller businesses say the funds help them manage debt and operational costs after a long period of uncertainty.Jay Foreman, CEO of gaming company Basic Fun, said he received about $450,000, roughly 7% of his claim, though he later described the pace of payments as “quite slow,” the AP reported.
Tariffs above legal limits have been eliminated
The refund comes after a widespread legal setback for the Trump administration. A ruling by the US Court of International Trade had already concluded that tariffs imposed under the 1974 Trade Act were “void” and “unauthorized by law,” saying the administration exceeded its authority by imposing broad import duties without congressional approval.The Supreme Court had also previously ruled against previous tariff measures, further restricting the administration’s use of emergency trade powers.The case is now expected to move to the Court of Appeal, with the possibility of reaching the Supreme Court again, even as the multi-billion dollar recovery continues to be processed.
