US companies began receiving refunds on import tariffs after the Supreme Court ruled that President Donald Trump did not have the constitutional authority to impose surcharges on products from virtually all countries.
The process, however, may be questioned after the government announced, on Friday (29), that it intends to appeal a court decision that extends the right to refunds to all affected importers, and not just those who filed lawsuits.
According to US Customs and Border Protection (CBP), refund requests totaling US$85 billion have already been accepted for processing, more than half of the US$166 billion the government estimates it owes to companies. So far, the agency has authorized the Treasury to release $20.6 billion in payments.
The intention to appeal was revealed amid a dispute with Judge Richard K. Eaton of the US Court of International Trade. The judge wants CBP Commissioner Rodney Scott to explain how long it will take to reimburse about 330,000 potentially eligible importers. A hearing is scheduled for June 9.
Justice Department lawyers argued that Scott, because he holds a high-ranking position, cannot be compelled to testify and argued that Eaton overstepped his authority by ruling in March that the Supreme Court ruling benefited “all registered importers.” “For this reason, the defendants intend to appeal the universal injunction issued by the court,” they stated.
In response, Eaton highlighted that the case involves US$166 billion and stated that the return of the amounts unduly charged is the appropriate solution for the collection considered illegal.
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While large retailers, such as Walmart, are considering using the resources to reduce consumer prices, smaller companies say the amounts will be used to pay future fees, reduce debt and maintain operations. The CEO of toymaker Basic Fun, Jay Foreman, said he had received about $450,000, equivalent to 7% of his total order, but criticized the slowness of subsequent payments. “It’s time to return these resources to the economy,” he said.
