The Trump administration has said it plans to appeal a federal court order that would allow all importers who paid now-struck-down tariffs to seek refunds, a move that could slow or partially halt a multibillion-dollar repayment process already underway.Businesses across the United States have already begun receiving refunds after the US Supreme Court ruled that President Donald Trump lacked constitutional authority to impose higher import duties on goods from nearly every country.The ruling opened the door for companies to reclaim payments collected under the disputed tariff regime.According to US Customs and Border Protection (CBP), refunds started reaching successful applicants’ bank accounts on May 12, roughly three weeks after importers were allowed to submit claims through an 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 payment, CBP said in a legal filing cited by news agency AP.
Legal fight over who qualifies for refunds
The latest dispute centres on a federal judge’s ruling that not only companies that filed lawsuits, but all importers of record who paid the invalid tariffs, should be eligible for refunds.The Trump administration objected to this broader interpretation and informed the court on Friday that it intends to appeal.Justice department lawyers also argued that US Customs and Border Protection Commissioner Rodney Scott should not be compelled to testify in court, and requested that deputies appear instead, citing his status as a presidential appointee.They further contended that the court had exceeded its authority in extending refunds to all importers, calling it a “universal injunction”.Judge Richard K Eaton, however, stressed the scale of the case, writing, “This case involves $166 billion,” and added that the remedy for unlawful collection was refunding the duties collected by the government.
Businesses await clarity as repayments continue
Before the appeal announcement, the refund mechanism had been functioning relatively smoothly, with early payments already reaching companies.Some large retail chains have indicated that reimbursements could eventually be used to lower prices on select goods, while smaller firms say the money is helping them manage debt and operational costs after prolonged uncertainty.Toy company Basic Fun CEO Jay Foreman said he had received about $450,000, roughly 7% of his claim, though he later described the pace of repayments as a “total slow roll”, AP reported.
Tariffs struck down over legal limits
The refund process follows a broader legal setback for the Trump administration. A US Court of International Trade ruling had already found that the tariffs imposed under a 1974 trade law were “invalid” and “unauthorized by law”, saying the administration exceeded its authority by imposing broad import duties 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 move to an appellate court, with the possibility of reaching the Supreme Court again, even as billions of dollars in refunds continue to be processed.
