US Appeals Court Rejects Trump Administration's Request, Refuses to Delay Initiation of Tariff Refund Legal Procedures

The U.S. Supreme Court ruled last month that tariffs imposed by former President Donald Trump under the International Emergency Economic Powers Act (IEEPA) were unlawful. The Justice Department subsequently appealed to the federal appeals court, seeking a 90-day stay on the initiation of tariff refund procedures to allow the executive and legislative branches additional time to evaluate options. However, the U.S. Court of Appeals for the Federal Circuit rejected the Justice Department's request on March 2, paving the way for the rapid advancement of subsequent steps in the refund process.

This appellate ruling clears obstacles for the lower court—the U.S. Court of International Trade—to commence legal proceedings related to tariff refunds. According to Justice Department attorneys, the refund process could take several years to complete.

Following the Supreme Court's decision, approximately 2,000 importers have filed lawsuits demanding refunds, including major multinational corporations such as FedEx. Smaller importers are hoping that customs officials will implement a straightforward and cost-effective refund mechanism.