US judge says Trump appeal could delay $166 billion in tariff refunds for importers – Firstpost

A US trade court judge on Tuesday urged the Trump administration to withdraw its appeal against an order requiring the government to refund billions of dollars in tariffs that were struck down by the Supreme Court, warning that the move could create further delays for businesses waiting to recover their money.

Judge Richard Eaton of the US Court of International Trade questioned why the administration was continuing to challenge his March ruling directing US Customs and Border Protection (CBP) to repay affected importers, even as the agency has already begun processing refunds through a newly created online portal.

The dispute stems from the Supreme Court’s decision that President Donald Trump lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose certain tariffs, triggering one of the largest refund exercises in US trade history. The tariffs generated an estimated $166 billion in revenue, much of which is now subject to repayment claims.

At a hearing in Manhattan, Eaton repeatedly suggested that the administration’s appeal was unnecessary and risked slowing refunds to importers.

“My appeal to you is to withdraw your appeal,” Eaton told government lawyers. “You win nothing if the Court of Appeals says my order is unlawful.”

Billions already being refunded

CBP Executive Assistant Commissioner Susan Thomas testified that the agency has already sent about $23 billion in refunds to the US Treasury for payment, with another $480 million expected to be processed this week.

Thomas described the effort as a “historic, unprecedented challenge” for the agency, which has spent more than a month handling claims through a dedicated online portal.

The administration argues, however, that a narrower dispute remains over roughly $10 billion to $11.4 billion in tariff payments that it considers legally final and therefore not eligible for reimbursement without separate court orders covering each importer.

When government lawyers cited the amount at issue, Eaton responded sharply: “Even I think that’s real money,” drawing laughter from a packed courtroom.

Businesses seek clarity

The case has become a closely watched test of how the government unwinds trade measures that courts later determine were imposed without legal authority.

While Customs has continued issuing refunds, the administration’s appeal has raised concerns among importers that part of the repayment process could become tied up in further legal proceedings.

For businesses that paid billions of dollars in duties under the overturned tariff programme, the outcome will determine not only how quickly they receive refunds but also whether every affected importer is ultimately compensated without having to pursue separate court actions.

The court has not yet ruled on whether the freeze on Eaton’s earlier refund order will be lifted, but Tuesday’s hearing signalled growing judicial frustration with a legal battle that continues even as billions of dollars are already being returned.

With inputs from agencies.