The Trump administration said Friday it will appeal a federal judge’s order that allows all companies that paid invalidated import duties to seek refunds, not only those that previously filed lawsuits. The move introduces uncertainty into a repayment process that had begun operating following a U.S. Supreme Court decision finding President Donald Trump lacked the constitutional authority to levy broad taxes on goods from nearly every other country.
Until the Department of Justice notified the court of its planned appeal, the refund system managed by U.S. Customs and Border Protection had run without major interruption. Refunds reached the bank accounts of the first successful applicants on May 12, roughly three weeks after the agency opened the window for importers and their customs brokers to submit claims, according to CBP.
The appeal threatens to halt the distribution of the funds as the courts review the eligibility criteria for the repayments. The judge’s order expanded the pool of qualifying businesses beyond those actively litigating the tariff impositions, directing the government to process claims across the board.
The refund process traces back to the Supreme Court’s ruling that struck down the president’s tariff authority, a decision that left importers who had paid the duties seeking to recover the funds. Customs and Border Protection established the claims system to manage the repayments for businesses affected by the invalidated taxes.
Large and mid-sized importers alike have been monitoring the refund timeline closely, as the invalidated duties represent a substantial outlay of capital that had been tied up at the border. The administration’s appeal places those pending and future claims in legal limbo until a higher court rules on whether the broader eligibility mandate can stand.
Customs officials are awaiting further instructions from the Justice Department and the courts on how to proceed with active applications. The appeal filing marks the latest legal step in a protracted trade-policy dispute that has moved from executive action to constitutional litigation and now into administrative appeals.