Trump administration invokes birthright citizenship Supreme Court case in appeal to block wide tariff refunds

The Trump administration has appealed to the U.S. Court of Appeals for the Federal Circuit to block the U.S. Customs and Border Patrol from issuing refunds to companies that paid illegal tariffs, even those that did not file a lawsuit. Government lawyers argue that a judge in the Court of International Trade overstepped his authority in ordering the refunds.

The government refers to a 2025 Supreme Court case on birthright citizenship, which limited the use of universal injunctions that apply to all affected parties. The majority of refunds have already been processed, totaling $100 billion. The issue is with companies that paid tariffs that were finalized through customs; they can file a lawsuit to get their money back.

However, businesses, particularly smaller ones, might struggle with this process due to the lack of prior notice and the statute of limitations. Law professor Barry Appleton believes the government has a stronger legal argument, but smaller businesses might suffer as they may not be able to afford to sue for money they were unaware they were owed.