Federal Court Rejects Trump Administration's Tariff Refund Delay

The U.S. Court of Appeals for the Federal Circuit rejected a request by the Donald Trump administration to delay the refund process for billions of dollars in tariffs. The Justice Department had sought a 90-day stay to consider its options following a February 20 Supreme Court ruling that baseline tariffs established on April 2, 2025, were illegal under the International Emergency Economic Powers Act.

The appeals court denied the stay and transferred the matter to the U.S. Court of International Trade in New York to determine how to execute the reimbursements. The government collected over $130 billion by mid-December, and the Penn Wharton Budget Model estimates total refund liabilities could reach $175 billion.

More than 2,000 lawsuits have been filed by importers, including FedEx, L’Oreal, Costco, and Revlon Inc. Some plaintiffs have proposed using their suits as test cases to establish calculation methods, while smaller businesses are urging U.S. Customs and Border Protection to create a simplified administrative web portal for refunds to avoid expensive legal fees.

Senator Elizabeth Warren and other Democratic leaders criticized the administration's attempt to slow the process, with Warren calling the delay a "theft in broad daylight." While the administration seeks new tariffs to replace those struck down, legal experts suggest these may be intended to raise revenue to cover the impending refund liabilities.