The U.S. Federal Circuit Court of Appeals on March 2 rejected the Department of Justice's request for a 90-day stay, refusing to delay the refund of $175 billion in tariffs. The court ordered an immediate writ of mandamus to the U.S. Court of International Trade (CIT), forcing the Trump administration to initiate formal refund procedures for the tariffs levied under the "national emergency" claim over the past year. This marks a new chapter in the legal battle involving over 300,000 importers and more than 2,000 lawsuits.
Refund Process Could Take Over 5 Years
The DOJ had requested the 90-day buffer on February 27 to assess the situation, but the appeals court swiftly denied it. Despite the legal green light, the actual refund process remains lengthy. Both the DOJ and the Trump administration indicated that due to the sheer number of importers and the massive amount involved—including legal reviews and interest calculations—the entire refund could take anywhere from three to five years. Principal plus interest will be included, but when exactly the money will reach businesses remains uncertain. Attorney Neal Katyal advised affected companies to quickly consult legal counsel and prepare documentation early. The ruling not only decides the fate of $175 billion but also sets a major precedent on presidential authority. With the Trump administration likely to continue fighting and the enormous administrative burden, the situation remains fluid.
Supreme Court Ruled Tariffs Unconstitutional
On February 20, the U.S. Supreme Court voted 6-3 that the Trump administration's use of the International Emergency Economic Powers Act (IEEPA) to impose global "reciprocal tariffs" and fentanyl tariffs was unconstitutional—an overreach of executive power. The court ruled that tariff authority belongs to Congress, not the president. This decision invalidated tariffs levied on over 100 countries, but did not affect steel, aluminum, or auto tariffs imposed under Section 301 or Section 232. The total affected tariffs amount to $175 billion, with over 2,000 companies including FedEx, Revlon, and Costco having filed lawsuits.
Trump called the ruling "stupid and unreasonable" and quickly invoked Section 122 of the Trade Act of 1974, imposing 10-15% temporary tariffs under a "balance of payments" rationale (up to 150 days, with extension requiring Congressional approval)—an attempt to salvage his trade agenda while market uncertainty persists.