Trump appeals tariff refund order as importers get first checks

The Trump administration moved Friday to appeal a federal court order requiring it to refund tariffs to all importers who paid them—not just those who filed lawsuits—potentially halting a process that had been working relatively smoothly for Canadian and American businesses.

The U.S. Supreme Court ruled Trump lacked constitutional authority to impose the tariffs. After the ruling, U.S. Customs and Border Protection launched a refund system in late April. By May 12, the first successful applicants received their money. Applications totaling $85 billion—more than half the $166 billion the government estimates it owes—were accepted for processing as of May 22, with the Treasury directed to issue $20.6 billion in refunds so far.

But the Department of Justice informed the court Friday it intended to appeal Judge Richard K. Eaton's order allowing all 330,000 potentially eligible importers to seek refunds. The administration also objected to the judge's demand that CBP Commissioner Rodney Scott appear in court to explain how quickly the government could repay everyone. A hearing is scheduled for June 9.

Justice Department lawyers argued that Eaton exceeded his authority when he determined the Supreme Court's ruling entitled all importers to refunds. They asked that Scott's deputies appear instead, claiming a high-ranking presidential appointee cannot be compelled to testify.

Meanwhile, CBP said it would continue processing refunds "as quickly as it can" for the roughly 485 importers who filed trade court complaints. The appeal could slow or halt the broader refund process for companies that didn't litigate. For Canadian importers and companies relying on U.S. imports, the appeal signals a prolonged fight over money the government has already acknowledged owing.