Friday is the deadline for the U.S. Department of Justice to respond to its first major tariff refund case.
2026-02-27 15:20:39
The Trump administration's Justice Department is facing its first major legal deadline after the U.S. Supreme Court ruled that tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA) were illegal.
The Justice Department needs to comment by Friday on one of the first cases concerning refunds, in which the plaintiffs are requesting expedited payment of tariff refunds through the Court of International Trade (CIT), which typically handles tariff cases.
Trade lawyers say there are over 2,000 cases filed by companies with the CIT seeking tariff refunds . The CIT suspended hearings for these cases last December until after the Supreme Court issues its ruling.
Following the Supreme Court's ruling, VOS, one of the plaintiffs, filed a motion requesting a prompt refund process through the CIT. The federal district court sent a motion to the Department of Justice, requesting a response by February 27th to allow the case to revert to the CIT for adjudication. As of Thursday afternoon, the Department of Justice had not filed any documents.
The High Court gave the government's court system 32 days after making its ruling to decide on the next steps.
Although this case involves only a small group of businesses, it has legal implications for many cases. The plaintiffs stated in their filings: "The court's swift action in this case will facilitate the prompt payment of refunds to numerous other plaintiffs who have filed and will challenge IEEPA tariffs in this court, and the refund process in this case can also serve as a template in such cases."
Trade lawyers and customs experts say approximately 300,000 shippers paid customs duties, and some estimate that refunds could amount to as much as $175 billion . Following the Supreme Court's ruling, more companies filed lawsuits, including one filed last week by FedEx.
The Justice Department's response to the court's request could begin to reveal how the Trump administration plans to handle the refund process. President Trump stated at a press conference last Friday that filing lawsuits over tariff refunds could take years. Since last Friday, congressional Democrats have been urging the administration to develop a plan to repay tariffs, arguing that the government has several months to prepare. Treasury Secretary Bessant stated last Friday, "Filing a lawsuit and obtaining compensation could take years, and if refunds are paid, it looks like just the ultimate corporate benefit."
In their motion, the plaintiffs stated that they wish to request the government to issue the necessary executive order to "swiftly invalidate the IEEPA tariffs, including any necessary executive order to ensure that the plaintiffs receive the refunds and interest promised by the government promptly."
The Justice Department needs to comment by Friday on one of the first cases concerning refunds, in which the plaintiffs are requesting expedited payment of tariff refunds through the Court of International Trade (CIT), which typically handles tariff cases.
Trade lawyers say there are over 2,000 cases filed by companies with the CIT seeking tariff refunds . The CIT suspended hearings for these cases last December until after the Supreme Court issues its ruling.
Following the Supreme Court's ruling, VOS, one of the plaintiffs, filed a motion requesting a prompt refund process through the CIT. The federal district court sent a motion to the Department of Justice, requesting a response by February 27th to allow the case to revert to the CIT for adjudication. As of Thursday afternoon, the Department of Justice had not filed any documents.
The High Court gave the government's court system 32 days after making its ruling to decide on the next steps.
Although this case involves only a small group of businesses, it has legal implications for many cases. The plaintiffs stated in their filings: "The court's swift action in this case will facilitate the prompt payment of refunds to numerous other plaintiffs who have filed and will challenge IEEPA tariffs in this court, and the refund process in this case can also serve as a template in such cases."
Trade lawyers and customs experts say approximately 300,000 shippers paid customs duties, and some estimate that refunds could amount to as much as $175 billion . Following the Supreme Court's ruling, more companies filed lawsuits, including one filed last week by FedEx.
The Justice Department's response to the court's request could begin to reveal how the Trump administration plans to handle the refund process. President Trump stated at a press conference last Friday that filing lawsuits over tariff refunds could take years. Since last Friday, congressional Democrats have been urging the administration to develop a plan to repay tariffs, arguing that the government has several months to prepare. Treasury Secretary Bessant stated last Friday, "Filing a lawsuit and obtaining compensation could take years, and if refunds are paid, it looks like just the ultimate corporate benefit."
In their motion, the plaintiffs stated that they wish to request the government to issue the necessary executive order to "swiftly invalidate the IEEPA tariffs, including any necessary executive order to ensure that the plaintiffs receive the refunds and interest promised by the government promptly."
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