Federal Judge Orders $166B Tariff Refunds — Trump Administration Says It Can’t Comply
The Trump administration says it cannot immediately comply with a court order requiring the government to begin refunding billions in tariffs that courts ruled illegal.
According to Reuters and Axios reporting, U.S. Customs and Border Protection told the U.S. Court of International Trade that it currently lacks the systems needed to process the massive refunds ordered by the court.
The dispute stems from a February Supreme Court ruling that found former President Donald Trump did not have authority under the International Emergency Economic Powers Act to impose sweeping tariffs.
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After that decision, Judge Richard Eaton ordered the government to begin refunding companies that paid the duties.
Officials say the refunds could total roughly $166 billion and affect more than 330,000 importers.
But CBP told the court that issuing refunds immediately would require millions of hours of manual work under its current system.
The agency instead proposed creating a new electronic process that could be ready within about 45 days.
The conflict now raises a new legal question: whether the administration’s logistical argument is enough to delay compliance with a federal court order.
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