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Federal Circuit Sends Tariff Cases to Trade Court, Clearing Way for Refunds

The order returns the dispute to the trade court, setting up refund fights over unlawful IEEPA duties with massive interest exposure.

Overview

  • The appeals court dissolved its stay and issued mandates forthwith, rejecting the administration’s bid for a 90‑day pause and enabling the Court of International Trade to craft relief.
  • The Supreme Court ruled 6–3 on Feb. 20 that IEEPA does not authorize tariffs, after which the president rescinded those levies and invoked Section 122 to impose a 10% temporary surcharge.
  • Refund exposure is estimated in the $130 billion to roughly $175 billion range, with the government previously stipulating refunds with interest for similarly situated plaintiffs.
  • Senate Democrats urged Treasury to begin automatic repayments and to publish a refund timeline, calling the IEEPA collections illegal taxes on businesses and consumers.
  • Policy analysts estimate delay adds about $700 million per month in interest as more than 900 follow‑on suits proceed at the trade court, with companies including FedEx, Revlon, and Costco seeking relief.