A U.S. Federal appeals court on Monday rejected the Biden administration’s attempt to delay legal proceedings concerning the potential reimbursement of over $130 billion in tariffs imposed during the Trump administration. The decision, handed down by the U.S. Court of Appeals for the District of Columbia Circuit, compels the government to move forward with cases seeking refunds for duties paid by importers.
The dispute stems from former President Donald Trump’s leverage of Section 232 of the Trade Expansion Act of 1962 to impose tariffs on steel and aluminum imports, citing national security concerns. In February, the Supreme Court largely invalidated these tariffs, opening the door for importers to seek refunds. The Biden administration subsequently sought a delay in the processing of these refund claims, arguing that further legal clarification was needed.
The appeals court deemed the requested delay “unjustifiable,” according to reports from German broadcaster Deutsche Welle and German news outlet Die Zeit. The court’s ruling forces the cases to be remanded to the U.S. Court of International Trade, where the question of refunds will be determined. More than 300,000 importers, including companies like FedEx, have filed claims seeking reimbursement, with the total amount exceeding $130 billion, according to n-tv.
The Trump administration had initially imposed the tariffs on a range of goods, including steel, aluminum, and Chinese imports. Following the Supreme Court’s decision, Trump has already announced new tariffs of 10 percent on some imports, with a potential increase to 15 percent, as reported by Spiegel Online. These new tariffs are based on a different legal authority than the ones struck down by the court.
The Biden administration’s attempt to postpone the refund process was met with opposition from businesses who argued for the swift return of the collected duties. The court’s decision represents a setback for the administration’s efforts to manage the fallout from the Trump-era trade policies. The U.S. Government had argued that open legal questions needed resolution before refund procedures could begin, a position the court rejected.
The ruling does not specify a timeline for the U.S. Court of International Trade to resolve the refund claims, leaving the exact amount and timing of potential reimbursements uncertain. Trump has suggested the legal battle over the payouts could last as long as five years, according to Spiegel Online.
