The Trump administration is pushing back against efforts to force the federal government to repay billions of dollars in tariff revenue collected before the Supreme Court invalidated President Donald Trump’s worldwide tariff program earlier this year, setting up a major legal fight over who is entitled to reimbursement, Newsmax reports.

At the heart of the dispute is whether every importer that paid the now-defunct tariffs should receive a refund or whether repayments should be limited to businesses that still have active claims pending before the government.

While federal officials have already authorized the return of tens of billions of dollars, the administration is challenging a ruling by the Court of International Trade that would require a much broader repayment effort.

“The message from the government is pretty straightforward: We don’t have the authority to issue these refunds, and unless a court orders us to repay a specific company, we’re not going to do it,” a former Trump administration official and trade lawyer close to the White House told Politico.

“They’re ready to claw back what they know they legally can,” the lawyer added.

Justice Department attorneys contend that the trade court overstepped its legal authority when it ordered refunds on a universal basis. Several trade-law specialists say the administration’s position may ultimately prevail.

“That issue could really go both ways,” said James Kim, an international trade partner at ArentFox Schiff, adding that “the DOJ has good arguments” and that “it’s going to be interesting to see how this plays out.”

Matthew Seligman, who represents importers seeking repayment, acknowledged that an appeal was expected. He said, “It was inevitable that the government would appeal [Court of International Judge Richard Eaton’s April order requiring universal tariffs] and win,” maintaining that the lower court’s decision was inconsistent with prior Supreme Court rulings.

The latest phase of the case is unfolding at a hearing scheduled for Tuesday, where Susan Thomas, executive assistant commissioner for trade at U.S. Customs and Border Protection, is expected to provide testimony regarding how the government is handling refunds.

In court documents, Thomas stated, “Should the court’s order become final and require reliquidation of entries of all importers, CBP intends to fully comply with the court’s final decision as expeditiously as possible.”

Judge Richard Eaton has demanded additional information from the administration regarding its plans for repayment and indicated that the purpose of the hearing is “to ascertain if it is the government’s policy to return all of the unlawfully collected duties either by complying with the court’s order or by some other means.”

Meanwhile, importers and their legal teams are preparing further action in court, including efforts to pursue class-action litigation aimed at securing broader refunds.

Sara Albrecht, chair and CEO of the Liberty Justice Center, commended Eaton’s management of the case, saying he has been “very proactive in directing this case” and that Tuesday’s proceedings “will explain a lot on what the government is thinking and their positions.”

She also signaled that additional legal options remain on the table, declaring, “We’ve got plans A, B, C, and D for June 9. We’re ready.”

Some affected companies accuse the administration of creating obstacles that make it difficult for businesses to recover money they believe they are owed.

Jay Foreman, CEO of toy manufacturer Basic Fun!, compared the process to insurance disputes, saying, “It’s almost like the insurance companies, they just deny your claim, and it’s only the people that are willing to fight through four or five, six denials that get paid.”

“They figure a bunch of people will drop out,” said Foreman.

{Matzav.com}