When the Supreme Court ruled in February that a broad set of tariffs imposed by President Trump last year violated the constitutional separation of powers, the federal government was faced with the task of refunding roughly $166 billion in import fees that had been collected illegally. Trump said he hoped companies wouldn’t file for refunds — “I think it’s brilliant if they don’t do that,” Trump told a reporter — but many major importers signaled that they planned to get all they are owed.
As ordered by the U.S. Court of International Trade, which handled the details of the Supreme Court’s ruling, the Trump administration started the process of making tariff refunds, opening a web portal to collect claims and eventually paying out more than $20 billion. But last Friday, the Justice Department informed the trade court that it plans to appeal the order to issue refunds.
In a motion filed with the court, the Justice Department said it will challenge a ruling that requires U.S. Customs and Border Protection to reprocess tariff fees that have been finalized through a process called liquidation. About half of the illegal tariff fees paid have passed through that process, and the motion argues that “Once an entry is finally liquidated, CBP has no authority to reliquidate or refund money without a court order.”
The filing introduces a new strain of uncertainty into the refund process. One law firm cited by Bloomberg is advising clients to delay making any legal moves until the dispute is cleared up in the appellate courts.
“The administration seems to be suggesting that any company that wants to be reimbursed for unlawful border taxes might need to sue on its own accord,” the editorial board of the Washington Post wrote Monday. “But some companies might decide this isn’t worth it if the legal costs are great and the tariffs they paid are relatively small. Others might not want to sue to get their money back for fear of regulatory or other reprisals by the Trump administration.”
Some tariffs reduced: Separately, in a presidential proclamation Monday, Trump lowered the tariffs on some imports made from aluminum and steel, including machinery used in agriculture and manufacturing.
Starting on June 8 and running through the end of 2027, the tariff on a set of aluminum and steel derivative products will be 15%, down from the current 25%. Foreign equipment made from at least 85% U.S. steel or aluminum will be eligible for a lower tariff rate of 10%.
In April, Trump imposed a 50% tariff on imported goods made entirely or largely from aluminum, steel or copper, while derivative goods “substantially” made from those metals, such as harvesters and bulldozers, were hit with a 25% tariff rate. The tariffs were applied under Section 232 of the Trade Expansion Act of 1962, which gives the president the power to restrict imports in response to national security threats.
As Bloomberg’s Derek Wallbank and Michael Hirtzer note, the tariff adjustment comes at a time when American farmers are facing soaring costs for fertilizer and equipment, and manufacturers are struggling with higher input costs for metals such as aluminum, the price of which has soared in the wake of Trump’s global tariffs and the war in the Middle East. The White House said the temporary reduction in the tariff is intended “to spur near–term investments that will rebuild the Nation’s industrial base.”