By Blessing Nweke
Federal appeals court on Monday rejected an effort by the Trump administration to delay the refund of billions of dollars in tariffs that the Supreme Court of the United States struck down as illegal last month.
The U.S. Court of Appeals for the Federal Circuit declined a request from President Donald Trump’s Justice Department to pause the process for 90 days. Instead, the court moved the case into its next phase by sending it to the U.S. Court of International Trade in New York, which will determine how refunds should be handled.
In its Feb. 20 ruling, the Supreme Court found that Trump’s sweeping tariffs on most countries were unlawful, clearing the way for importers to seek reimbursement. However, the justices did not provide guidance on how refunds should be administered.
The federal government had collected more than $130 billion from the tariffs by mid-December. According to estimates from the Penn Wharton Budget Model, total refunds could reach as much as $175 billion.
Trade attorney Ryan Majerus, a partner at King & Spalding and a former U.S. trade official, said he expects the trade court to act swiftly. “I would expect the Court of International Trade to quickly issue an order requesting a status update from the government,” he said, predicting judges may take an aggressive stance to ensure compliance.
Siddartha Rao of Hoguet Newman Regal & Kenney said clients are pressing for clarity. “We are somewhat in uncharted territory,” he noted, raising questions about how the Treasury would finance potentially massive payouts as the administration considers new tariffs to replace those invalidated.
Original article
Comments