U.S. appeals tariff refund order

The Justice Department said on May 29 that it would appeal a U.S. Court of International Trade order requiring broader tariff refunds for importers that did not sue over the duties. The filing aims to stop a payout process that has already begun after the Supreme Court ruled in February that President Donald Trump lacked authority to impose tariffs under the International Emergency Economic Powers Act. U.S. Customs and Border Protection has already directed the Treasury Department to issue $20.6 billion in refunds, according to a court filing. The dispute now turns on whether relief should be limited to the companies that brought the case or extended across the full universe of affected importers. ### Why is the government appealing after refunds have already started? May 29 is the date the administration disclosed that it planned to challenge Judge Richard K. Eaton’s order allowing all companies that paid the invalidated duties to seek refunds. Justice Department lawyers told the court they objected to what outside trade lawyers and SCOTUSblog described as a universal injunction, arguing the government should not have to repay non-litigants without importer-specific court orders. (finance.yahoo.com) U.S. Customs and Border Protection had been processing claims through an online portal launched on April 20. Until the government signaled an appeal, that system had been moving claims through with relatively little public disruption, according to reporting by AP and CNBC. ### How much money is already in motion? (finance.yahoo.com) U.S. Customs and Border Protection told the court that applications covering $85 billion in refunds had been accepted for processing as of May 22. The same filing said Treasury had been directed to issue $20.6 billion in refunds so far. CBP has estimated that the government could ultimately owe up to $166 billion to more than 330,000 importers. (cnbc.com) ABC News reported that the filing showed tens of thousands of businesses were already receiving money back. Bloomberg, cited by Yahoo Finance and other outlets, separately reported that refund claims had accelerated as the government’s CAPE processing system took in more applications. ### What exactly did the Supreme Court decide? (abcnews.com) February 2026 is when the Supreme Court ruled that Trump’s IEEPA tariffs were unlawful, setting off the refund fight now playing out in lower courts. The justices did not settle the full refund question, leaving the Court of International Trade to oversee how importers would recover duties already paid. SCOTUSblog said the latest clash centers on whether the government must refund only the parties before the court or all similarly situated importers. (abcnews.com) May 7 brought a separate Court of International Trade ruling that 10% global tariffs imposed under Section 122 of the Trade Act of 1974 were unlawful, according to trade-law summaries cited in current coverage. Yahoo Finance reported that Section 122 and Section 301 questions are adding a second layer of uncertainty beyond the IEEPA refund dispute. (scotusblog.com) ### Which importers are most exposed to the appeal fight? More than 330,000 importers could be affected because many companies paid the duties but never filed their own lawsuits. The administration’s position, as summarized by SCOTUSblog and trade-law analyses, is that refunds for some finally liquidated entries should not go automatically to non-litigants. That leaves a sharper divide between companies already in court and companies relying on the broader order. (gtlaw.com) Walmart, Costco, Apple, Home Depot and General Motors are among the companies that have said they are applying for refunds, ABC News reported. UPS, FedEx and DHL have also outlined refund steps for customers, showing how the case has moved beyond manufacturers and retailers into logistics networks. ### What happens next in court? (scotusblog.com) June 9 is the next scheduled hearing date before Judge Eaton in the Court of International Trade. Eaton has asked how long it would take to repay all eligible importers and whether the court should require the government to move faster, while the administration has argued that CBP Commissioner Rodney Scott should not have to appear personally. (abcnews.com) The appeal itself is expected to go to the U.S. Court of Appeals for the Federal Circuit, according to current court-coverage and trade-law reports. That next step will determine whether the broader refund order remains in force while CBP continues processing claims already in the pipeline. (natlawreview.com) (clickondetroit.com)