Trump appeals tariff refund order

The Trump administration has moved to appeal a federal judge’s order that would widen refunds of invalidated Trump-era tariffs to all U.S. importers, not only the companies that brought the underlying lawsuits. The notice of appeal was filed on May 29, according to reports from Bloomberg and CPA Practice Advisor. The dispute centers on tariffs imposed under the International Emergency Economic Powers Act, or IEEPA, that the U.S. Supreme Court said on February 20 were unlawful. The appeal now puts a refund process already underway at risk of slowing or stopping while the next round of litigation proceeds. ### Which tariffs are at issue here? The Supreme Court ruled on February 20 in *Learning Resources, Inc. v. Trump* that President Donald Trump lacked authority under IEEPA to impose the tariffs at issue, according to legal summaries from Holland & Knight and other trade-law analyses. After that ruling, U.S. Customs and Border Protection stopped enforcing the duties, and the Court of International Trade began overseeing how refunds should be handled. (cpapracticeadvisor.com) Judge Richard Eaton of the U.S. Court of International Trade later ordered Customs to recalculate duties more broadly than the government wanted. Trade lawyers and industry summaries said the order went beyond the original plaintiff companies and covered all entries subject to the invalidated levies, including some that had already been liquidated. (hklaw.com) ### Why is the administration appealing now? The Justice Department said it would challenge the judge’s authority to require across-the-board refunds, according to the May 29 Bloomberg report republished by CPA Practice Advisor. That filing did not contest that some refunds were owed after the Supreme Court decision; it targeted the scope of the remedy and whether a single trade judge could extend relief to importers that never sued. (supplychaindive.com) CNBC reported on May 30 that the administration’s appeal could disrupt the mechanics of repayment because Customs had already been processing claims under the trial court’s order. Bloomberg described the result as possible “legal chaos” in a system that had already started operating. ### How does IKEA end up in a tariff case? (cpapracticeadvisor.com) Two IKEA customers filed a proposed federal class action in Philadelphia seeking refunds for price increases they say were passed through to shoppers when the tariffs were in effect. Local and trade press reports said the plaintiffs allege IKEA raised prices to offset duties that were later declared unlawful. One customer is seeking less than $20, according to 6abc Philadelphia’s report on the filing. (cnbc.com) The IKEA case shows how the tariff fight has spread beyond importers and the government. Consumer suits are now testing whether retailers that recovered tariff costs through higher prices may have to share any recovery with shoppers who paid more at the register. Forbes and other legal summaries have described those cases as part of a broader wave of follow-on litigation after the Supreme Court ruling. (6abc.com) ### Who gets the money if refunds are paid? Importers were the parties that paid the duties directly to Customs, and the trade-court refund orders are directed at those payments. But consumer plaintiffs in cases like the IKEA suit argue that retailers passed those costs through, at least in part, to customers. That has created a second layer of litigation over who ultimately bore the economic burden of the tariffs. (forbes.com) Trade-law analyses have also noted timing rules that matter for refunds, including reliquidation procedures and protest deadlines for older entries. Those administrative details could become more important if the appeal narrows who can recover or pauses payments while the Federal Circuit reviews Eaton’s order. (6abc.com) ### What happens next in court? The U.S. Court of Appeals for the Federal Circuit is the next stop for the administration’s challenge to Eaton’s refund order. Any request for a stay could determine whether Customs keeps processing broad refunds while the appeal is pending, according to Bloomberg, CNBC and trade-law commentary. (foxrothschild.com) In Philadelphia, the proposed class action against IKEA remains at an early stage, with scheduling still ahead and no public comment from the company reported in the coverage reviewed here. The two tracks — importer refunds in the trade courts and consumer claims in district court — are now moving at the same time. (6abc.com) (cpapracticeadvisor.com)