US Government Appeals to High Court Over Tariff Refunds: Is the Global Trade War Entering a New Phase?

The U.S. government has appealed to the Supreme Court over the $100 billion in tariff refunds issued by the U.S. Customs and Border Protection (CBP). The administration argues that the Court of International Trade's (CIT) universal injunction ordering refunds for all importers overstepped its authority. The government points to a Supreme Court case from June 2025 on birthright citizenship, which limited the use of universal injunctions. The CBP has already certified refunds totaling $100 billion, but the government claims that companies whose tariffs were finalized cannot be reprocessed. Lawyers for the government argue that importers can still file lawsuits to recover the money. Barry Appleton, a law professor and co-director of New York Law School’s Center for International Law, notes that while the government has the stronger legal argument, small businesses may suffer. "The government took this money under a law the Supreme Court said never authorized tariffs," he said. The government argues that refunding unlawful tariffs should not be contingent on whether a business can afford to litigate. This development could signal a strategic shift in the U.S. government's approach to global trade disputes.