Government Lawyers Challenge Trade Judge's Order on Tariff Refunds

Government lawyers have filed an appeal challenging a U.S. Court of International Trade judge's order that mandates U.S. Customs and Border Protection (CBP) to issue refunds for tariffs previously deemed illegal. The government argues the judge overstepped his authority by extending the refund order to all companies that paid the tariffs, not just those that filed lawsuits.

The appeal, filed with the U.S. Court of Appeals for the Federal Circuit, cites a June 2025 Supreme Court decision that limited the use of universal injunctions—rulings that apply to all affected parties. Judge Richard Eaton, overseeing the trade court cases, has stated these limitations do not apply here, a position the government contests.

In their filing, government attorneys argued that the trade court's broad injunctions compelling refunds for all importers conflict with the Supreme Court's ruling. CBP has already processed $100 billion in refunds. The core issue involves companies whose finalized customs entries mean the administrative refund process is no longer available, leaving them to pursue legal action.

While the government acknowledges that hundreds of such orders have been entered and importers can still sue within the statute of limitations, legal experts suggest the government may have the stronger legal standing. However, some argue that requiring businesses, particularly smaller ones, to litigate for unlawful tariffs imposes an unfair burden.