US appeals tariff refund order

The Trump administration said on May 29 that it will appeal a federal judge’s order allowing all importers to seek refunds of tariffs the Supreme Court already ruled unlawful. The dispute no longer centers on whether President Donald Trump had authority to impose the broad reciprocal tariffs; the Supreme Court answered that in February. The new fight is over how far courts can go in forcing the government to repay companies while Customs processes claims. U.S. importers have already begun receiving money back, according to court filings and lawyers involved in the refund process. ### Why is the government appealing if the tariffs were already struck down? The Supreme Court ruled on Feb. 20 that Trump lacked authority under the International Emergency Economic Powers Act to impose higher import taxes on goods from nearly every country. That decision invalidated the legal basis for the reciprocal tariff program and set off a scramble over refunds. (ttnews.com) Judge Richard Eaton of the U.S. Court of International Trade then ordered a broader remedy, directing customs authorities to let all companies that paid the unlawful duties seek refunds, not only the businesses that had filed suits. The Justice Department’s appeal targets that remedy. Bloomberg and other reports said the administration is contesting whether a judge can order across-the-board refunds while individual claims are still being handled. (ttnews.com) ### Who is already getting money back? Trade lawyers told Bloomberg, as reported by Transport Topics, that some clients had money deposited into their bank accounts as of May 6. One lawyer, Daniel Cannistra of Crowell & Moring, said a client received a payment that included interest, though he did not identify the company or amount. U.S. Customs and Border Protection has been using an online system to process claims, but court filings show the agency has also faced operational strain. (bloomberg.com) A separate filing cited by Transport Topics said the administration was issuing more than $35.5 billion to importers who successfully filed for refunds, while another filing said importers had to request refunds through a portal and opt in to electronic payment. (ttnews.com) ### What exactly is at stake in the refund order? The March 4 order from Eaton followed the Supreme Court ruling and pushed Customs toward refunding most of the duties collected under the unlawful tariffs. Law firms tracking the case said the refunds could cover roughly $166 billion in duties, plus interest, across hundreds of thousands of importers. (ttnews.com) The administration has not argued that the Supreme Court left the tariffs in place. Instead, it has argued in court that immediate, universal refunds are difficult to administer and that claims should move through a structured process. Earlier filings said Customs was building an automated system and could not quickly comply with parts of Eaton’s order as written. (dwt.com) ### Does this affect only companies that sued? The May 29 appeal notice came after Eaton’s order expanded refund access beyond the original plaintiffs. Before that order, the practical question for many businesses was whether only litigants would recover money promptly or whether non-party importers would also be included. ABC News and CNBC, citing the court dispute, reported that the administration wants to stop all companies from automatically seeking refunds under Eaton’s ruling. (ttnews.com) That means the appeal could determine whether the refund process remains broad or narrows back toward case-by-case claims. ### What happens next in court and at Customs? (ttnews.com) The Justice Department has already filed its notice of appeal, and the refund process could slow or pause depending on what the appellate court does next. Transport Topics reported that, until the government informed Eaton of its planned appeal, the Customs-led refund system had been functioning and payments were reaching some businesses. (cnbc.com) U.S. Customs and Border Protection is still processing claims through its portal, according to recent court filings, while the appeal moves forward. The next milestone is a ruling from the appellate court on whether Eaton’s nationwide refund order remains in effect as the case proceeds, with importers, the Justice Department and Customs all directly affected. (ttnews.com 1) (ttnews.com 2)