The Trump administration has announced plans to appeal a federal judge's order that allows all importers who paid invalidated tariffs to seek refunds, not just those who filed lawsuits. The move could halt the refund process, which had been progressing smoothly since the Supreme Court ruled that President Trump lacked constitutional authority to impose higher import taxes.
U.S. Customs and Border Protection reported that refunds began reaching bank accounts on May 12, with applications for $85 billion in refunds accepted as of May 22. The agency has directed the Treasury to issue $20.6 billion so far, out of an estimated $166 billion owed to companies.
The administration revealed its appeal while objecting to a demand by Judge Richard K. Eaton for CBP Commissioner Rodney Scott to testify about the repayment timeline. Justice Department lawyers argued that Eaton exceeded his authority by ordering refunds for all importers, not just those in pending lawsuits.
Judge Eaton responded that the government must refund all unlawfully collected duties, stating, "This case involves $166 billion." He scheduled a June 9 hearing to discuss speeding up the process.
Some retailers plan to use refunds to lower prices, while smaller companies say the partial refunds are crucial for survival. Jay Foreman, CEO of toy company Basic Fun, received about $450,000 of his claim but described the process as a "total slow roll."
