US Government Challenges Universal Tariff Refunds: What Importers Need to Know

The U.S. government is actively challenging a Court of International Trade (CIT) ruling that ordered U.S. Customs and Border Protection (CBP) to issue tariff refunds to all affected businesses- even those that never filed a lawsuit. In a brief filed with the U.S. Court of Appeals for the Federal Circuit, federal attorneys argue that Judge Richard Eaton exceeded his judicial mandate by granting universal relief across the board.

At the center of the dispute is whether the CIT has the authority to issue universal injunctions that extend remedy to non-party importers. The government’s appeal draws heavily on a June 2025 Supreme Court precedent, which restricted nationwide injunctions and limited court relief strictly to the specific plaintiffs named in a suit. While Judge Eaton previously determined that these restrictions do not apply to tariff proceedings under the International Emergency Economic Powers Act (IEEPA), Justice Department attorneys maintain that universal refunds cannot be reconciled with established Supreme Court limits on judicial remedies.

For importers, the practical implications hinge on administrative finality and statutory deadlines. CBP has already processed and certified over $100 billion in tariff refunds, primarily covering open or active entries. However, for companies whose customs entries have already been finalized and liquidated, federal law prohibits CBP from administratively reprocessing those tariffs once the standard protest window has closed. The government asserts that non-party businesses seeking recovery for finalized entries cannot rely on a blanket CIT order; instead, they must actively initiate their own legal action within the applicable statute of limitations.

This legal dispute highlights a growing burden on small and mid-sized businesses. While the government may hold a strong technical argument regarding judicial scope, waiting on court-mandated universal relief exposes non-litigating importers to severe financial downside. Obtaining a refund for an unlawful tariff should not require every company to become a litigator, yet under current appellate arguments, remaining on the sidelines risks forfeiting rightful claims once procedural deadlines pass. Importers holding unrefunded duties should evaluate their entry status with legal counsel to determine whether filing an independent claim is necessary to preserve their recovery rights. Contact us today to learn more about the available options to secure your tariff refunds.