Daijiworld Media Network - Washington

Washington, Mar 3: A federal appeals court on Monday dismissed the Trump administration’s request to slow the process of refunding billions of dollars collected under tariffs recently struck down by the Supreme Court.

The U.S. Court of Appeals for the Federal Circuit has now referred the case to a lower court to manage the next phase of refunds. The administration had sought a 90-day pause, but the judges refused.

The Supreme Court ruling on February 20 declared the broad tariffs imposed by the Trump administration on most countries illegal, paving the way for importers to claim refunds. By mid-December, the government had collected over $130 billion, and estimates suggest refunds could total $175 billion, according to the Penn Wharton Budget Model.

The Supreme Court did not provide guidance on the refund process, leaving the U.S. Court of International Trade in New York to determine the procedure. Trade lawyer Ryan Majerus expects the court to seek an immediate status update from the government on plans for refunds, potentially expediting the process.

Law firm partner Siddartha Rao highlighted the complexities involved, noting concerns over how the government will fund these refunds, given that the money is not readily available. The administration is also reportedly considering new tariffs to replace those invalidated by the Supreme Court, balancing strategic trade goals with the practical need to finance refunds.

The unfolding situation signals a significant challenge for the Treasury and federal trade authorities as they navigate this unprecedented scenario.