Appeals court refuses to stall Trump tariff refunds

0
Appeals court refuses to stall Trump tariff refunds

A federal appeals court rejected the Trump administration’s request to delay enforcement of the Supreme Court decision striking down most of the president’s global tariffs. The ruling sends the case back to the U.S. Court of International Trade to begin determining how refunds will be issued.

The U.S. Court of Appeals for the Federal Circuit denied the administration’s bid to pause its mandate for up to 90 days. That clears the way for lower-court proceedings tied to tariff repayments to move forward immediately.

Last month, the Supreme Court ruled 6-3 that the International Emergency Economic Powers Act did not authorize the sweeping country-specific tariffs. Those duties generated more than $130 billion for the federal government through late 2025.

The high court invalidated the tariffs but did not spell out how refunds should be structured.

Tom Williams/CQ-Roll Call, Inc via Getty Images

Appeals court denies pause

On Friday, the administration asked the Federal Circuit to hold off returning the case to the trade court, arguing Congress and the White House needed time to weigh options after the Supreme Court’s decision.

Justice Department lawyers have estimated that sorting out refunds could take years.


This story is featured in today’s Unbiased Updates. Watch the full episode here.


Lawyers representing small businesses that challenged the tariffs pushed back. In a filing Monday, they wrote, “Nothing about the refund issue warrants any delay in issuing this Court’s mandate, let alone a staggering three months’ delay… The proper time to issue the mandate is now.”

The appeals court declined to grant the delay.

Neal Katyal, one of the attorneys for the small-business plaintiffs, said his team will move “immediately” to pursue refunds.

Refund claims move ahead

The case now returns to the Court of International Trade, which will determine how repayment claims are processed.

More than 900 refund claims have already been filed in federal court, according to the Liberty Justice Center, which represents several plaintiffs. Companies seeking relief include FedEx, Costco, Revlon, Dyson and L’Oreal.

Kevin Carter/Getty Images

The Supreme Court’s ruling applies to the broad country-specific tariffs imposed under emergency powers. It does not affect sector-based duties enacted under different statutory authority.

After the decision, Trump invoked a separate law to impose a new 10% import duty and has said he could raise it to 15%.

Next steps at trade court

The Federal Circuit had previously held many of the tariffs unlawful but paused further action while the case went to the Supreme Court. Monday’s order lifts that hold and returns control to the trade court.

The Liberty Justice Center argued last week that the government had repeatedly maintained businesses could be made whole through refunds if the tariffs were struck down.

“The government cannot have it both ways,” the group said, noting that customs systems already process tariff repayments.

The trade court will now decide how refunds are calculated and whether interest will be included.

Ella Rae Greene, Editor In Chief

Leave a Reply

Your email address will not be published. Required fields are marked *