US appeals tariff refund order

The U.S. Department of Justice told Judge Richard K. Eaton on May 30 that it intends to appeal his order allowing all importers that paid invalidated Trump-era tariffs to seek refunds. The notice targets a March 4 order from the U.S. Court of International Trade that said the remedy applied beyond the companies that had filed suit. The appeal comes after the Supreme Court ruled on Feb. 20 in *Learning Resources, Inc. v. (cnbc.com) Trump* that the International Emergency Economic Powers Act did not authorize the tariffs at issue. U.S. Customs and Border Protection has already begun paying claims while the legal fight over who qualifies for repayment continues. ### Why is the government appealing if the tariffs were already struck down? The Supreme Court said on Feb. 20 that President Donald Trump lacked authority under IEEPA to impose the challenged tariffs, but that ruling did not itself settle every refund question. Judge Eaton later ordered CBP to liquidate or reliquidate certain entries without the IEEPA duties and said the order applied to all importers, not only the plaintiffs. Justice Department lawyers told Eaton they plan to appeal what they described as his “universal injunction.” In the same filing, they argued Eaton exceeded his authority by determining that the Supreme Court’s ruling entitled “all importers of record” to refunds. (cnbc.com) ### What did Judge Eaton’s March 4 order actually do? The March 4 order from the Court of International Trade directed CBP to remove IEEPA tariffs from unliquidated entries and to reliquidate non-final liquidated entries without those duties. Holland & Knight, summarizing the order and subsequent proceedings, said the court did not address entries that had already become final. (supremecourt.gov) Judge Eaton also said the refund order applied to all importers, a step that trade lawyers said was unusual because it extended relief beyond the named parties. The court reasoned that its trade-law jurisdiction differs from the federal district courts discussed in the Supreme Court’s 2025 decision in *Trump v. (cnbc.com) CASA, Inc.*, according to the same summary. ### How much money is already moving? CBP said the first successful applicants received deposits on May 12, about three weeks after importers and customs brokers could begin submitting claims. By May 22, claims totaling $85 billion had been accepted for processing, and CBP said it had directed the Treasury Department to issue $20.6 billion in refunds. (hklaw.com) CBP has also built a dedicated IEEPA duty refund process inside its Automated Commercial Environment, known as CAPE, and says valid requests can be submitted there when authorized by court order or other law. The agency separately says customs refunds are generally issued electronically through ACH. (hklaw.com) ### Who is affected by the appeal? The dispute matters most for importers that paid the tariffs but never joined the original lawsuits. If the appeal succeeds, the government could limit refunds to companies that preserved claims through litigation or qualifying protest procedures, though the final scope will depend on the appellate ruling and any further orders from the trade court. (cnbc.com) That is an inference from the government’s position that Eaton’s order should not extend to all importers. The Supreme Court case itself also underscored that tariff challenges belong in the Court of International Trade, not ordinary district court. (cbp.gov) That jurisdictional point has shaped the refund process now unfolding before Eaton in New York. ### Why is CBP Commissioner Rodney Scott part of the next hearing? Judge Eaton ordered CBP Commissioner Rodney Scott to appear in the Court of International Trade on June 9 to address how long it would take to repay all potentially eligible importers and whether the court should require faster action. Justice Department lawyers asked Eaton to let deputies appear instead, arguing Scott is a high-ranking presidential appointee who cannot be compelled to testify. (cnbc.com) Senior Judge Richard K. Eaton sits on the U.S. Court of International Trade in New York. The June 9 hearing is the next public milestone in the refund case as the government prepares its appeal and CBP continues processing claims already in the system. (supremecourt.gov) (cit.uscourts.gov) (cnbc.com)