Judge mulls expanding refunds of Trump’s tariffs
A federal judge indicated that he may expand litigation concerning refunds for President Donald Trump’s broad tariffs by granting class-action certification, despite teh governance refunding approximately 60% of the $166 billion in unlawful duties. Judge richard Eaton,appointed by Bill Clinton,heard arguments from the Department of Justice and business attorneys,emphasizing concerns about potential denied refunds for thousands of importers. The coalition of businesses, led by wine importer V.O.S. Selections, argued for class certification to streamline refund processes and avoid individual lawsuits. They proposed certifying a class to issue a single injunction for reliquidation of tariffs across all plaintiffs, promoting efficiency and fairness. The DOJ contended that the request was late in the process, offering alternatives like waiving filing fees. Eaton appeared inclined to support class certification but did not rule instantly. the case follows a 2025 Supreme Court ruling that declared Trump’s tariffs unlawful, leading to a system for processing refunds, which has so far returned $100 billion. The court’s decision could significantly impact how tariff refunds are handled for affected businesses.
A federal judge appeared likely to expand litigation over refunds for President Donald Trump’s sweeping tariffs by granting a class-action certification, even as the administration has refunded roughly 60% of the $166 billion in unlawful duties.
Judge Richard Eaton, an appointee of former President Bill Clinton, heard arguments from both the Department of Justice and lawyers for the coalition of businesses made before the U.S. Court of International Trade, roughly six months after the Supreme Court struck down Trump’s “Liberation Day” tariffs. Eaton opened the hearing by commending the administration’s quick work in setting up a system to process refunds, the Consolidated Administration and Processing of Entries program, following the Supreme Court’s February ruling, but also expressed concern that “tens of thousands of importers” could still be denied refunds they are owed.
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Colleen Sinzdak, a lawyer for the coalition of businesses led by wine importer V.O.S. Selections, argued that the federal court should certify a class out of “an abundance of caution” to ensure that businesses do not have to file their own lawsuits to get their full tariff refunds, adding that it would streamline the process and avoid thousands of small business from having to file individual claims and pay the court’s filing fee.
“Rather than doing that, the court can certify a class and issue a single class-wide injunction that just says you need to reliquidate the entries with IEEPA tariffs across the board,” Sinzdak told the judge. “We are not aware of any law that prevents a reliquidation order from being on a class-wide basis, and it would certainly accomplish all of the fundamental goals of class actions, which is judicial efficiency and fairness.”
“Because again, rather than having courts and litigants be burdened with loads and loads and loads of different suits and this whole detailed process with envelopes floating back and forth and everything to that, you just have a single order that says for all plaintiffs in this class, the entries with IEEPA tariffs must be reliquidated,” she added.
Justice Department lawyers argued to the court that the request to approve a class action came too late in the process, but suggested other ways to ensure that small businesses receive their refunds, including waiving the court’s filing fee or creating a template complaint for International Emergency Economic Powers Act tariff claims. The idea of waiving the filing fee left Eaton “stunned,” but the judge said he appreciated the DOJ at least making suggestions to the court.
Eaton appeared likely to side with the coalition of companies attempting to get a class certified, but did not issue a ruling or give a timeline for one during Thursday’s arguments.
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The Supreme Court’s February ruling that Trump’s tariffs, unveiled in April 2025, were unlawful because the IEEPA does not authorize the president to impose tariffs set off another legal war over ensuring tariff refunds were processed quickly.
The administration created a portal for importers to get their tariff refunds as a result of the litigation and told a federal court earlier this week that it had processed $100 billion in refunds.
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