US court rejects Trump bid to delay billions in tariff refunds

2026-03-03 - 10:32

The US Court of Appeals for the Federal Circuit dealt a blow to the Trump administration Monday by rejecting a Department of Justice request to delay proceedings on tariff refunds, clearing the way for the next stage of what could become a massive repayment process. The court referred the matter to a lower court, dismissing arguments that a three-month postponement was warranted. Court rejects delay request "Nothing about the refund issue warrants any delay in issuing this Court's mandate, let alone a staggering three months' delay," the court filing stated, adding emphatically that "the proper time to issue the mandate is now." The ruling rebuffs administration efforts to slow a process that could ultimately require the government to return billions of dollars collected from importers under tariff policies now deemed unlawful. Supreme Court ruling triggers repayments On February 20, the US Supreme Court ruled that sweeping tariffs imposed by President Donald Trump on most countries were unlawful, opening the door for importers to seek refunds on duties paid. By mid-December, the government had collected over $130 billion from the tariffs, with total potential refunds estimated at $175 billion. The Supreme Court did not provide guidance on how refunds should be handled, leaving the US Court of International Trade to determine the complex repayment process. Administration warnings materialize Department of Justice lawyers warned that the refund process could take years, despite Trump administration officials having repeatedly cautioned that the government might have to repay tariffs collected from importers if it lost before the Supreme Court. That scenario has now materialized, presenting the administration with a massive fiscal and logistical challenge as it faces the prospect of returning billions to companies that paid the now-invalidated duties. Process moves forward With the appeals court rejecting delay efforts, the case now proceeds to the lower court for determination of how refunds will be implemented. The ruling represents a significant setback for administration attempts to postpone what promises to be an extraordinarily complex repayment process involving thousands of importers and potentially years of litigation over individual claims.