"Refusing to Refund Tariffs: Trump Administration Stalls on Payouts"

The U.S. political media outlet Politico reported on June 9 (local time) that the Trump administration is employing a stalling tactic, refusing to refund tariffs despite the fact that its reciprocal tariff policy was ruled unlawful by the U.S. Supreme Court. Legal experts predict that the White House's strategy may succeed.

On this day, the U.S. Department of Justice appeared at an appellate hearing in the U.S. Court of Appeals for the Federal Circuit regarding tariff-related matters. A trade attorney close to the White House and a former Trump administration official stated, "The government's position is very clear. The court has no authority to enforce tariff refunds, and unless it specifically orders a refund for a particular company, the government will not return the money."

U.S. President Donald Trump. Photo by Reuters Yonhap News

In February, the Supreme Court ruled that reciprocal tariffs were unlawful but did not clarify its position on the issue of refunds. Subsequently, in March, the U.S. Court of International Trade (CIT) sided with a filter manufacturer in a case seeking tariff refunds, ordering that all importers who paid reciprocal tariffs be refunded. The CIT further stated that every importer could potentially be eligible for refunds based on the Supreme Court's decision.

Since April 20, the Trump administration has established a refund system managed by U.S. Customs and Border Protection (CBP) to allow companies to apply for refunds. As of May 22, refunds exceeding $85 billion had been approved. However, eligibility is recognized only for certain types of tariff payments. Legal experts estimate that the amount for which refund eligibility is denied could reach tens of billions of dollars.

Separately, the Department of Justice recently filed an appeal against the CIT’s decision. It argues that a court order for tariff refunds to all companies exceeds the court's authority and that refunds cannot be issued for tariff payments already finalized by CBP. Although CBP is currently processing refund procedures for thousands of importers following the Supreme Court ruling, the administration insists this is a voluntary process and that there is no obligation to return all previously collected tariffs.

Legal experts assess that the Department of Justice has favorable odds. This is because last year, the Supreme Court ruled that federal courts cannot issue nationwide injunctions affecting people who are not parties to a lawsuit. According to Politico, if the Trump administration's argument is accepted, companies may have to file individual lawsuits to obtain refunds. This would impose significant financial burdens, causing many small and medium-sized businesses to abandon their claims. Small importers have recently requested that the CIT approve a class action to represent all companies excluded from the refund system, arguing that they cannot afford the costs of individual refund lawsuits.

This content was produced with the assistance of AI translation services.