Trump administration officially filed a request with the U.S. Court of Appeals for the Federal Circuit to delay all legal proceedings related to tariff refunds for up to four months.
This move is the latest development in the massive fallout from the Supreme Court’s 6-3 ruling on February 20, which struck down the administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose global tariffs.
The Administration’s Argument for Delay
The Department of Justice (DOJ) argues that the sheer complexity of the situation—involving over 300,000 importers and an estimated $130 billion to $175 billion in potential refunds—requires a “cooling-off” period.
- Political Consideration: The DOJ stated in its filing that the court should allow 90 to 120 days to give the “political branches an opportunity to consider options” before litigation resumes.
- The “Breakneck Speed” Warning: Government lawyers criticized the “breakneck speed” being pushed by private companies, arguing that a more “careful process” is needed to handle the massive volume of transactions (over 34 million).
- Replacement Strategy: The administration noted that the “unlawful” IEEPA duties have already been replaced by new 10% tariffs under Section 122 of the Trade Act of 1974, creating a new legal layer that must be reconciled with any refund calculations.
The Legal Standoff: $175 Billion at Stake
While the Supreme Court invalidated the collection of the tariffs, it remained silent on how the government should repay the money already collected. This has created a high-stakes legal battle:
| Party | Position |
| Trump Administration | Expects a “years-long” fight; argues that many importers passed costs to consumers and may not be entitled to the full refund. |
| US Retailers & Importers | Demanding “fast, automatic” refunds; argue that they are the “importers of record” and are legally owed the money plus interest. |
| U.S. Court of International Trade (CIT) | Currently the primary venue for these cases; around 1,500 companies have already filed active lawsuits. |
Critical Deadlines for Businesses
Despite the government’s request for a delay, trade attorneys are urging businesses to act immediately to preserve their rights:
- Post Summary Corrections (PSC): Importers are filing these now for “unliquidated” entries (items that entered the US within the last 314 days) to remove the illegal duties.
- Protest Deadlines: For older entries, companies must file formal protests with U.S. Customs and Border Protection (CBP) within 180 days of liquidation.
- The “March 15” Window: Some analysts note that CBP has the authority to unilaterally issue refunds for many shipments before March 15, 2026, but it is unlikely to do so given the administration’s current resistance.
