The Trump administration is fighting in federal court to limit who receives billions of dollars in refunds for tariffs the Supreme Court deemed illegal. The Justice Department argues only companies that sued are eligible, appealing a lower court's order for universal refunds. Importers are pursuing a class-action lawsuit, arguing the government's position is unconstitutional. The case is now before the U.S. Court of Appeals for the Federal Circuit.
Trump tariff refund court battle
- ▪The Supreme Court held that President Trump improperly imposed the tariffs by citing an emergency powers law to usurp Congress's taxmaking authority
- ▪The Justice Department is appealing a Court of International Trade order that would make all businesses that paid the tariffs eligible for refunds plus interest
- ▪The Trump administration is in a court battle over refunding billions of dollars for tariffs the Supreme Court ruled were illegally imposed
- ▪A U.S. Customs and Border Protection official is set to testify in federal court on June 9, 2026, about the government's tariff refund plans
- ▪The Justice Department argues that only companies that were parties in the more than 2,500 lawsuits challenging the tariffs are legally entitled to refunds
Supreme Court legal authority limits
- ▪Legal experts suggest the Justice Department has strong arguments that this limit on nationwide injunctions also applies to the Court of International Trade
- ▪Lawyers for importers argue it would be unconstitutional for companies that sued to pay less in tariffs than other companies that also paid the invalidated duties
- ▪The Supreme Court's February ruling that struck down the tariffs did not specify how the administration should refund the money it had collected
- ▪The Trump administration argues a recent Supreme Court precedent prevents federal courts from issuing nationwide injunctions that apply to non-parties in a lawsuit
Finalized payment refund restrictions
- ▪As of June 1, U.S. Customs and Border Protection had accepted $89.6 billion in refund claims for processing
- ▪U.S. Customs and Border Protection reported in May 2026 that it had directed the Treasury Department to issue $20.6 billion in refunds
- ▪Once merchandise is 'liquidated,' importers have 180 days to protest U.S. Customs and Border Protection's determination, after which it typically cannot be reassessed
- ▪The government is currently limiting refund applications to businesses whose bills were not finalized or were settled within 80 days of the Supreme Court's ruling
- ▪The Justice Department argues it cannot refund payments for merchandise that has already been "liquidated," or finalized by U.S. Customs and Border Protection
- ▪U.S. Customs and Border Protection (CBP) estimated it had collected $166 billion from the now-invalidated global tariffs
Importer class action lawsuit
- ▪Jay Foreman, CEO of toy company Basic Fun!, said his company has received about $450,000 of an estimated $7.5 million it is owed
- ▪A class action could provide a path for smaller businesses to receive refunds, as they may not be able to afford individual litigation
Federal Circuit appeal process
- ▪The Justice Department's appeal of the refund eligibility order is now before the U.S. Court of Appeals for the Federal Circuit
- ▪Judge Richard Eaton is proceeding with a hearing on June 9, 2026, to get details on the government's refund plan, even as the appeal is pending
- ▪The Federal Circuit temporarily suspended an order for CBP Commissioner Rodney Scott to testify, allowing his deputy, Susan Thomas, to appear instead
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