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Federal Circuit Sends Tariff Refund Cases to Trade Court, Denies 90-Day Pause

The trade court will now set procedures for returning more than $130 billion collected under unlawful IEEPA tariffs.

Overview

  • Monday’s order issues the appellate mandate “forthwith,” rejecting the administration’s request to delay refunds after the Supreme Court ruled IEEPA does not authorize presidential tariffs.
  • The U.S. Court of International Trade will determine timing, interest, and mechanics of repayment, with estimates of potential liability reaching as high as $175 billion.
  • Justice Department filings warned the process could take years, while importers’ counsel cited prior government assurances that unlawful duties would be refunded with interest.
  • Businesses have filed hundreds to thousands of refund suits, including FedEx, Costco, Revlon, Dyson, and L’Oréal, and FedEx says it intends to pass any refunds back to customers.
  • Senate Democrats pressed Treasury to begin automatic refunds and provide a 90-day timeline, as the administration pivots to a temporary 10% global surcharge under the Trade Act of 1974.