Trump Administration Faces Key Court Deadline Over Potential Tariff Refunds

The Trump administration is approaching a pivotal legal deadline as fallout continues from the U.S. Supreme Court’s decision striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

By Friday, the Department of Justice (DOJ) must respond to a federal court request in one of the earliest cases seeking accelerated tariff refunds. The case, filed by small business plaintiff V.O.S., could become a template for how the government handles what may amount to billions of dollars in repayments.

The dispute centers on whether refund claims should be swiftly returned to the U.S. Court of International Trade (CIT), which traditionally oversees tariff-related matters. The CIT had previously paused roughly 2,000 refund cases while awaiting the Supreme Court’s ruling. Now, plaintiffs are pushing to move forward quickly.

In its filing, V.O.S. argued that prompt court action would help ensure refunds — with interest — are processed efficiently not only in its case but also in numerous similar challenges pending before the CIT. The plaintiffs suggested that administrative steps may be required to ensure the invalidation of IEEPA tariffs is fully implemented.

Trade attorneys estimate that around 300,000 shippers paid the now-invalid tariffs, with potential refunds totaling as much as $175 billion. Additional lawsuits have been filed since the Supreme Court’s decision, including one by FedEx last week.

The Supreme Court gave the lower court system 32 days to determine procedural next steps following its ruling. However, uncertainty remains about how the administration intends to manage what could be a complex and prolonged refund process.

President Donald Trump has said publicly that litigation over tariff refunds could take years. Treasury Secretary Scott Bessent suggested that any payouts, if they occur, might face extended legal battles. Meanwhile, Democratic lawmakers have pressed the administration for a clear plan to reimburse affected businesses, arguing that officials had ample time to prepare for a potential adverse ruling.

Legal experts say the core issue is not whether refunds are owed but how they will be distributed. “There is no doubt that people that paid the IEEPA tariffs should get refunds,” said Pratik A. Shah, lead counsel in a related Supreme Court case. “The only question is the process by which refunds will be made.”

The DOJ’s response on Friday could offer the first concrete indication of how the administration intends to navigate the mounting refund claims — and whether businesses will face a swift repayment process or a protracted legal battle.