US importers could move closer to $166 billion in tariff refunds as class counsel seeks relief

The class action, Freestyle World, Inc. v. United States, was certified on Oct. 8 and is being heard in the U.S. Court of International Trade. The motion was filed by class counsel co-leads Lawrence Friedman of Barnes, Richardson & Colburn, and Elizabeth Cabraser and Nicholas Diamand of Lieff Cabraser Heimann & Bernstein.

“The proposed order would give the agency the authority it says it needs to provide full refunds with interest to all class members, including the tens of thousands of small businesses who lack the resources to bring their own cases,” the co-leads said in a statement provided to Fortune. “We will continue working closely with the Court and the government to make sure all importers who paid these unlawful tariffs receive the refunds they are owed as quickly as possible.”

The Supreme Court ruled in February that the IEEPA tariffs exceeded the president’s powers, opening the door to refunds. As of August, more than $115 billion had been disbursed through Customs and Border Protection’s CAPE system, but thousands of importers, including small businesses and individuals who bought tariffed items online, have not received refunds due to technical errors, lack of legal resources, or missing paperwork.

The Trump administration is contesting the universal refund order, appealing in June on the grounds that Judge Richard Eaton exceeded his authority and that the government cannot give refunds unless importers have sued to recover their money. The Justice Department said in a filing: “CBP has no authority to reliquidate or refund money without a court order.”

Judge Eaton, who presides over all tariff refund cases, has supported universal rebates, ruling in March that all importers who paid IEEPA tariffs were entitled to refunds and issuing a universal refund order in April. He has argued the Supreme Court’s limitations on universal injunctions do not apply to the Court of International Trade because it has exclusive subject-matter jurisdiction over trade issues and does not operate like a typical district court.

The Department of Justice has until Nov. 13 to file its answer to the initial complaint and until Dec. 9 to respond to the motion for relief.

Democratic legislators may have more leverage to pressure CBP following midterm victories. Sen. Elizabeth Warren (D-Mass.) wrote to CBP in June urging it to speed up refunds. “After the Supreme Court ruled President Trump’s tariffs were illegal, the Administration should have done everything in its power to quickly return that money to the Americans who paid it,” Warren wrote. Democrats have signalled plans to push for legislative repeal of specific levies, beginning with Canada. Sen. Ron Wyden (D-Ore.), likely to take over as head of the Senate Finance Committee, is leading the charge.