Trump appeals tariff refund order

The Trump administration is fighting on two tariff fronts at once. The Justice Department appealed part of a Court of International Trade order this week that directed broad refunds for duties collected under the International Emergency Economic Powers Act after the Supreme Court struck those tariffs down earlier this year. (bloomberg.com) Separately, the administration has proposed new tariffs of at least 10% on imports from 60 trading partners after a forced-labor investigation, a move Bloomberg reported would rebuild part of Trump’s tariff regime on a different legal basis. (ndtv.com) The two tracks intersect in timing and in money. Customs and Border Protection had already begun issuing some refunds before the appeal, and officials previously said more than $35 billion had been processed or was being sent out. Judge Richard Eaton has warned that the appeal could disrupt that work, according to Bloomberg. (bloomberg.com) ### What exactly did the administration appeal? The Justice Department filed notice that it would challenge Judge Eaton’s authority to order across-the-board refunds for all importers who paid the emergency-power tariffs later declared unlawful. (bloomberg.com) Bloomberg reported that the administration is contesting the requirement to recalculate and repay all covered import taxes, rather than limiting relief to a narrower set of entries. (spectrumlocalnews.com) Supply Chain Dive reported earlier that the trade court had first directed Customs and Border Protection to remove the defunct tariffs when finalizing non-liquidated entries, then later expanded the scope to include finally liquidated entries as well. (bloomberg.com) That expansion is central to the appeal because it widened the pool of importers eligible for repayment. ### How far had the refunds already gotten? Customs and Border Protection told the court in May that it had established a four-step refund process and expected payments to begin around May 11. Spectrum News later reported that the agency said more than $35 billion in refunds had been processed and was being issued to importers. (bloomberg.com) Judge Eaton, who is overseeing the refund cases, said at a hearing that an appeal risked interfering with progress already underway, Bloomberg reported. (supplychaindive.com) That warning matters because some businesses had already reported receiving money back. (supplychaindive.com) ### Why is Trump proposing a new round of tariffs now? (supplychaindive.com) U.S. Trade Representative Jamieson Greer’s office has proposed tariffs of at least 10% on imports from 60 trading partners after an investigation tied to forced labor. Bloomberg reported that the proposal would create a new trade barrier that may be less vulnerable to the legal problems that undid the earlier tariff program. (spectrumlocalnews.com) (bloomberg.com) India was among the countries identified in reports on the proposal. NDTV reported that the proposed rates ranged from 10% to 12.5%, with India among countries facing a 12.5% additional tariff in the reporting it cited from government filings. (spectrumlocalnews.com) ### Could the new tariffs end up smaller than Trump’s rhetoric suggests? Politico reported on June 3 that White House officials were weighing a narrower set of levies than Trump’s broader tariff language implied. (bloomberg.com) Politico said the administration was trying to balance Trump’s commitment to tariffs with economic constraints. That means the administration is simultaneously defending part of the old tariff structure in court while building a replacement through a separate trade process. (bloomberg.com) Bloomberg’s reporting tied the new proposal directly to the collapse of the earlier tariff wall after the Supreme Court ruling. (ndtv.com) ### What happens next in both fights? July 6 is the deadline for written comments on the proposed forced-labor tariffs, and July 7 is the date set for a public hearing, according to reporting on the USTR process. In the refund case, the appeal will determine whether Customs continues making broad repayments under Judge Eaton’s order or shifts to a narrower approach if a higher court sides with the administration. (politico.com 1) (politico.com 2) (bloomberg.com) (ndtv.com) (bloomberg.com)