A U.S. trade judge urged Trump administration officials to expedite refunds of over $10 billion in illegal tariffs, citing growing inequity for smaller businesses. The judge noted the administration's appeal is delaying payments.
The resolution of these tariff refunds impacts billions of dollars for businesses, with ongoing delays creating inequities between large and small importers. The case highlights the complexities of unwinding trade policies and the legal challenges in distributing funds deemed illegal.
A U.S. trade judge has urged Trump administration officials to expedite the refunding of over $10 billion in revenue from tariffs that were collected and later deemed illegal by the Supreme Court. Judge Richard Eaton of the Court of International Trade stated that delays in processing some claims are creating a "growing inequity" between large importers who use customs brokers and smaller businesses that have not.
Eaton suggested that the administration's decision to appeal his March 4 order, which mandated the refund of all tariffs, is contributing to the payment delays. U.S. Customs and Border Protection (CBP) has reported accepting and processing claims for nearly $90 billion in refunds, with $23 billion already completed and sent to the Treasury Department. The agency plans to address the more complex, older "liquidated tariffs" at a later stage, citing the inability to process all refunds at once.
To address potential issues with the government's authority to issue nationwide injunctions, companies are requesting that Eaton certify a class of all importers who paid the illegal tariffs. This would allow for a single order applicable to all importers, simplifying the refund process and potentially avoiding the need for individual lawsuits. Eaton did not rule on the class certification or on lifting the suspension of his March 4 order during the hearing.