Government lawyers fight trade judge’s order to refund importers for tariffs

Government attorneys argued that a Court of International Trade judge exceeded his authority by ordering the U.S. Customs and Border Protection to refund tariffs deemed illegal, even to companies that didn't file a lawsuit. The government appealed the ruling in June and submitted its initial brief on Monday. They cite a 2025 Supreme Court case limiting the use of universal injunctions, which apply to all affected parties rather than just specific litigants.

Judge Richard Eaton, overseeing the tariff lawsuits, claims the limitations on universal injunctions do not apply in this case, but the government disagrees. The Court of Appeals for the Federal Circuit has already issued refunds totaling $100 billion to importers who paid tariffs processed through customs. However, companies are barred from reprocessing those tariffs since the administrative refund process is unavailable.

Importers who haven't filed a lawsuit can still claim the money within the statute of limitations. Law professor Barry Appleton believes the government has the stronger legal position, but smaller businesses might face difficulties. He argues that the money was taken under a law deemed unconstitutional by the Supreme Court, and refunding unlawful tariffs should not depend on a company's ability to sue.

He contends that it's unfair to demand that small companies uncover owed funds without prior notice.