Tariff hearing and refund timeline

A federal trade court is weighing whether President Donald Trump can keep a 10% tariff on most imports, while Customs plans to start refunds from an earlier tariff fight on April 20. (opb.org) The hearing took place Friday, April 10, at the United States Court of International Trade in New York. A coalition of 24 mostly Democratic-led states and two small businesses asked a three-judge panel to block the tariffs Trump imposed on February 24. (pbs.org) (politico.com) Those tariffs are a 10% duty on most imports. Trump adopted them after the Supreme Court, on February 20, struck down his broader “Liberation Day” tariffs and said the International Emergency Economic Powers Act did not authorize that earlier tariff program. (nbcnews.com) (pbs.org) In the new case, the administration says Trump used Section 122 of the Trade Act of 1974, a law that lets a president respond to large balance-of-payments deficits with temporary import surcharges. Challengers told the court that the United States has run trade deficits for decades and that Section 122 was not written for a standing global tariff. (nbcnews.com) (msn.com) Judges pressed government lawyers on that point during oral arguments. Reuters reported the panel questioned whether a trade deficit alone is enough to justify broad tariffs under Section 122. (msn.com) A separate track now affects money already paid. United States Customs and Border Protection said the first phase of its refund system for unlawful tariffs collected under the International Emergency Economic Powers Act will go live on April 20, 2026. (cbp.gov) Customs said the new tool is called Consolidated Administration and Processing of Entries, or CAPE, and it will run inside the Automated Commercial Environment portal already used by importers and customs brokers. Phase 1 covers certain unliquidated entries and certain entries within 80 days of liquidation. (cbp.gov) (bloomberg.com) Only the importer of record or its customs broker can file a refund declaration in this first phase, and the filer must already have an Automated Commercial Environment account. Customs said later phases will handle more complicated claims. (bloomberg.com) (cbp.gov) A Court of International Trade order on April 1 said Customs was making “satisfactory progress” toward the April 20 deadline in the lead refund case, Atmus Filtration, Inc. v. United States. Trade lawyers said companies should gather entry records now because the first phase is limited and later phases may take longer. (thompsonhinesmartrade.com) (msn.com) The court has not ruled yet on Trump’s current 10% tariff. For importers, the next fixed date is April 20, when the government says the first refund window will open. (opb.org) (cbp.gov)