Federal court rejects Trump administration attempt to slow tariff refund process

Federal Court Dismisses Trump Admin’s Effort to Delay Tariff Refunds

WASHINGTON — A federal court on Monday dismissed the Trump administration’s effort to delay the refund process for billions in tariffs. The U.S. Court of Appeals for the Federal Circuit began the next phase by sending the case to a lower court for resolution. The Justice Department had argued in a Friday filing to pause proceedings for 90 days, but the judges rejected that request.

The Supreme Court ruled on February 20 that Trump’s global tariffs were legally flawed, enabling importers to pursue refunds. By mid-December, the government had amassed over $130 billion from these tariffs, with potential refund obligations reaching up to $175 billion, as calculated by the Penn Wharton Budget Model. However, the court’s decision provided no direction on refunds, omitting any mention of the process.

Now, the U.S. Court of International Trade in New York will determine how to handle the refund process.

“I anticipate the Court of International Trade will swiftly ask for an update on the government’s refund plans,” said Ryan Majerus, a trade lawyer at King & Spalding and former U.S. trade official. “The court is likely to push for clear justification on how the administration will adhere to the Supreme Court’s ruling,” he added.

Siddartha Rao, a partner at Hoguet Newman Regal & Kenney, noted increased client inquiries.

“We’re navigating uncharted territory,” Rao stated. “This is a Treasury issue, and it’s possible the administration is reimposing tariffs for strategic trade reasons or to generate revenue for refunds,” he said.