The Trump administration announced plans to appeal a federal judge’s order that allowed all U.S. importers to seek tariff refunds, not just those who sued. This move comes less than two months after launching an electronic tariff refund platform that has processed $85 billion in potential refunds, including $20.6 billion disbursed to the Treasury as of May 22, according to a U.S. Customs and Border Protection (CBP) filing.
The refund process, called the Consolidated Administration and Processing of Entries (CAPE), was introduced in April following the Supreme Court’s February ruling that struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The Department of Justice argued in court that Judge Richard K. Eaton exceeded his authority by ordering universal refunds and that refunds cannot be issued for importers who completed the liquidation process unless they sued to recover funds.
The administration’s appeal challenges the broad eligibility for refunds, contending that only importers who actively litigated should receive reimbursements. The CAPE platform was designed to streamline refund applications for the $166 billion in available tariff refunds after the Supreme Court found the original tariffs exceeded presidential authority. The legal dispute highlights tensions over the scope of tariff relief and the administration’s control over refund disbursements.
As of May 26, CAPE had accepted $85 billion in potential and certified refunds for processing, with $20.6 billion already sent to the Treasury for disbursement, per the CBP court filing. The appeal will determine whether the universal refund process continues or is restricted to litigants.