The Trump administration plans to appeal a federal court order that would allow all importers who paid invalidated tariffs to seek refunds, potentially affecting the scope and timing of ongoing repayments.
The issue follows a U.S. Supreme Court ruling that determined President Donald Trump lacked the authority to impose certain higher import duties on goods from numerous countries. Since the decision, U.S. Customs and Border Protection (CBP) has been processing refund claims from affected businesses.
According to CBP, refund applications totaling approximately $85 billion had been accepted for processing as of May 22, representing more than half of the estimated $166 billion owed to importers. The agency reported that it had already directed the Treasury Department to issue $20.6 billion in refunds.
The administration disclosed its intent to appeal while responding to a court request for CBP Commissioner Rodney Scott to testify regarding the timeline for refunding eligible importers. Justice Department lawyers argued that the court exceeded its authority by extending refund eligibility to all importers rather than only those that filed legal claims.
CBP stated it will continue processing refunds while the legal proceedings continue. The agency is prioritizing claims involving entries that remained open in its system following the Supreme Court decision, while older finalized accounts may require additional review and system adjustments.
Industry observers noted that an appeal could affect importers that did not participate in litigation seeking tariff refunds. More than 1,000 companies filed lawsuits related to the duties.
Several retailers and logistics providers have indicated that refunds may be used to reduce prices, return costs to customers, strengthen balance sheets, or support future business investments. Companies across sectors reported receiving partial repayments and said additional refunds could help offset costs incurred during the period the tariffs were in effect.
The legal dispute continues as courts consider the extent of refund eligibility and the pace at which repayments should be completed.
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