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U.S. Trade Court to Trump: Start the Tariff Refund Process


A federal trade court on Wednesday ordered the Trump administration to start refunding the more than $130 billion it collected in tariffs invalidated by the Supreme Court last month—a move that could make refunds easier for affected companies (The Wall Street Journal, subscription).

What happened: Judge Richard Eaton of the New York–based U.S. Court of International Trade said importers whose goods were subject to tariffs the Trump administration imposed under the International Emergency Economic Powers Act are “entitled to benefit” from the late February Supreme Court ruling in Learning Resources v. Trump. The Supreme Court held that the president lacks authority to impose tariffs under IEEPA ( POLITICO Pro, subscription).

  • Eaton’s order directs U.S. Customs and Border Protection to issue refunds by “recalculating the initial duties importers paid, excluding the tariffs voided by the high court,” according to the Journal. 
  • NAM President and CEO Jay Timmons and Rockwell Automation Chairman and CEO and NAM Board Chair Blake Moret recently said the Supreme Court’s decision “underscored the importance of clarity and durability in U.S. trade policy.”

The backdrop: The order, which suggests the Supreme Court’s decision should apply broadly to all importers of record, could significantly simplify the refund process for manufacturers affected by the tariffs.

  • Typically, once CBP finalizes a duty calculation, importers must pursue additional administrative steps, which can include litigation, to obtain refunds. By ordering CBP to make adjustments before entries are final, the court’s ruling could help companies avoid a complicated recovery process.
  • Eaton said the court’s chief judge designated him to handle all cases related to tariff refunds. 

What’s next: Judge Eaton scheduled a closed-door conference for Friday, which is likely to shed additional light on how the court plans to handle the broader refund process as well as the more than 2,000 refund-related cases pending before the court.

The NAM says: “This is an important development for manufacturers and importers affected by these tariffs, who currently face a great deal of uncertainty,” said NAM Chief Legal Officer Linda Kelly. “The order signals the court’s view that tariff refunds should be made available without additional litigation. At the same time, the broader legal question of universal relief may eventually need to return to the Supreme Court.”
 

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