US government challenges court order for blanket tariff refunds

The US government is appealing a trade court ruling that ordered tariff refunds for all importers affected by a February decision declaring the duties illegal, including companies that did not file lawsuits.

Government lawyers filed their opening brief on Monday with the US Court of Appeals for the Federal Circuit, arguing that Judge Richard Eaton of the Court of International Trade exceeded his authority. The appeal cites a June 2025 Supreme Court ruling that restricted the use of universal injunctions, which apply decisions to all affected parties rather than only specific litigants.

Judge Eaton has maintained that those restrictions do not apply to this case, but the government disagrees. In its brief, the government argued that the trade court's universal injunctions cannot be reconciled with the Supreme Court's decision in the birthright citizenship case.

Most refunds have already been distributed. Customs and Border Protection has processed and certified $100 billion in refunds. The dispute centers on companies whose tariff payments went through final customs processing, where an administrative refund process is no longer available under congressional rules.

The government said those companies can still file individual lawsuits to recover the money within the statute of limitations, noting that hundreds of such orders have already been entered in suits brought by importers.

Barry Appleton, a law professor and co-director of New York Law School's Center for International Law, said the government appears to have the stronger legal argument, but smaller businesses could face hardship. "The government took this money under a law the Supreme Court said never authorized it," he said. "Getting it back should not turn on whether a business could afford to sue."