Trump administration faces first major court deadline today in tariff refund battle

The Trump administration faces its first major court deadline today in the tariff refund battle

The US Department of Justice has until February 27 to respond to a motion filed by a tariff refund plaintiff seeking to fast-track repayment of duties deemed illegal by the U.S. Supreme Court.

The deadline marks the first key legal milestone after the court ruled that tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act were unlawful.

According to a CNBC report, companies have filed more than 2,000 cases with the Court of International Trade (CIT) seeking refunds. The CIT had stayed the proceedings in December pending the Supreme Court’s decision, and the cases are now set to move forward following the ruling.

Following the Supreme Court’s decision, one of the plaintiffs, V.O.S., sought to expedite its case by requesting that it be transferred to the Court of International Trade to pursue tariff refunds. The matter had previously been pending before a federal appeals court while awaiting the high court’s ruling.

A federal district court has directed the Department of Justice to respond by February 27 on whether the case should be sent back to the CIT for further proceedings. As of Thursday afternoon, the DOJ had not filed a response.

After the Supreme Court struck down President Donald Trump’s tariffs, US companies have moved to seek expedited refunds through the Court of International Trade, which handles such disputes.

However, Trump mentioned at a press conference that it could take years to litigate the tariff refund issue, CNBC reported.

In a recent motion, companies urged the court to require federal authorities to take the necessary administrative steps to reverse the tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

The filing calls on the government to issue orders to “promptly effectuate the invalidation of the IEEPA tariffs, including any administrative orders necessary to ensure that Plaintiffs swiftly receive the refunds, with interest, that the government has committed to provide.”

Although the motion indicates that the plaintiffs do not anticipate formal opposition from the government, it adds that “the Administration’s recent public statements suggest that injunctive relief from this Court will be necessary to ensure the government promptly adheres to its commitments to pay.”

According to CNBC, trade lawyers and customs experts estimate that roughly 300,000 shippers paid the tariffs and that potential refunds could total about $175 billion. Additional lawsuits have been filed following the Supreme Court’s decision, including a case brought last week by FedEx. The Supreme Court has given the federal court system 32 days to determine the next procedural steps following its decision.