Tariffs face court challenge — refunds coming

A federal trade court spent more than three hours on April 10 weighing whether President Donald Trump’s 10% global tariffs can stay in place. (opb.org) The case is in the U.S. Court of International Trade in New York, and Oregon is leading a coalition of 24 states challenging the tariffs alongside some businesses. (doj.state.or.us) (opb.org) The tariffs at issue took effect after the Supreme Court, on February 20, 2026, struck down Trump’s earlier import taxes imposed under the International Emergency Economic Powers Act, the 1977 emergency law known as IEEPA. The administration then switched to Section 122 of the Trade Act of 1974 and set a 10% worldwide tariff. (doj.state.or.us) (opb.org) Section 122 lets a president impose tariffs of up to 15% for 150 days without prior congressional approval. The current 10% tariffs are scheduled to expire on July 24, 2026, unless Congress extends them. (opb.org) At the hearing, judges pressed both sides on what Congress meant by “balance-of-payments deficits” when it wrote Section 122 more than 50 years ago. Jeffrey Schwab of the Liberty Justice Center, which represents some plaintiffs, said the judges asked “tough questions of all sides.” (opb.org) A separate change arrives on April 20, when U.S. Customs and Border Protection starts Phase 1 of its refund system for duties paid under the old IEEPA tariffs. The agency calls the tool Consolidated Administration and Processing of Entries, or CAPE, and it will run through the Automated Commercial Environment portal. (cbp.gov) (thompsonhinesmartrade.com) Phase 1 is narrow: it covers certain unliquidated entries and certain entries within 80 days of liquidation. Only the importer of record or the authorized customs broker that filed the entry can submit a CAPE declaration. (cbp.gov) (thompsonhinesmartrade.com) Customs said filers must upload a comma-separated values file through the web-based portal, not through the standard broker interface. Once a declaration is accepted, Customs will remove the IEEPA Chapter 99 tariff line, recalculate duties, and then liquidate or reliquidate the entry before issuing consolidated refunds. (cbp.gov) (thompsonhinesmartrade.com) Thompson Hine said Customs’ public guidance indicates refunds will generally go out within 60 to 90 days after a CAPE declaration is accepted, unless a compliance issue slows review. Trade lawyer Ryan Majerus said he expects the court may leave the new 10% tariffs in place because they are temporary and judges often defer to the president on trade. (thompsonhinesmartrade.com) (opb.org)