The Trump administration has said it plans to appeal a federal court order that would allow all importers who have now paid the affected tariffs to seek refunds, a move that could slow or partially halt the multibillion-dollar repayment process already underway.Businesses across the United States have already begun receiving refunds, following the U.S. Supreme Court’s ruling that President Donald Trump does not have the constitutional authority to impose higher import tariffs on goods from nearly every country.The ruling opened the door for companies to reclaim payments collected under the disputed tariff arrangement.According to US Customs and Border Protection (CBP), refunds began reaching the bank accounts of successful applicants on May 12, about three weeks after importers were allowed to submit claims through the online system.As of May 22, applications worth about $85 billion had been accepted for processing, while $20.6 billion had already been directed for payments, CBP said in a legal filing cited by news agency AP.
Legal battle over who is eligible for refund
The latest controversy centers on a federal judge’s ruling that not just the companies filing the suit, but all importers of record who paid illegal tariffs should be eligible for refunds.The Trump administration objected to this broad interpretation and informed the court on Friday that it intends to appeal.Justice Department lawyers also argued that U.S. Customs and Border Protection Commissioner Rodney Scott should not be forced to testify in court, and requested that representatives appear instead, citing his status as a presidential appointee.He further argued that the court had overstepped its authority in granting refunds to all importers, calling it a “universal injunction”.However, Judge Richard K. Eaton emphasized the scale of the case, writing, “This case involves $166 billion,” and said the remedy for unlawful collections is to refund the duties collected by the government.
Businesses await clarity as repayments continue
Before the appeal was announced, the refund mechanism was working relatively smoothly, with initial payments already reaching companies.Some larger retail chains have indicated the reimbursements could eventually be used to lower prices on select items, while smaller companies say the money is helping them manage debt and operating costs after prolonged uncertainty.Jay Foreman, CEO of toy company Basic Fun, said he had received about $450,000, about 7% of his claim, the AP reported, though he later described the pace of repayment as “totally slow.”
Charges over the legal limit reduced
The refund process comes after a broader legal setback for the Trump administration. The US Court of International Trade ruling had already found that the tariffs imposed under the 1974 trade law were “invalid” and “unauthorized by law”, saying the administration had exceeded its authority by imposing sweeping import tariffs without congressional approval.The Supreme Court had also previously ruled against earlier tariff measures, further limiting the administration’s use of emergency trade powers.The case is now expected to go to the appellate court, and likely reach the Supreme Court again, while the process of refunding billions of dollars continues.
