Under the tax refund wave, the Trump administration: Apply for a delay of about 4 months to initiate the refund process

After the U.S. Supreme Court ruled that Trump’s tariffs were illegal, an unprecedented tax refund battle is underway. The Trump administration has acknowledged that the refund process will likely be initiated, but at the same time has applied to delay the process by about four months, trying to buy time for policy responses.

According to CCTV News on February 27, within days of the Supreme Court ruling, more than 100 companies have filed new lawsuits demanding the government refund the tariffs paid. The total number of related lawsuits has thus exceeded 2,000.

As previously reported by Wallstreetcn, many listed companies and well-known brands have joined in succession. Industry insiders believe that the participation of large corporations like FedEx and Costco has, to some extent, reduced other companies’ concerns about potential retaliation from the White House.

Meanwhile, the U.S. Department of Justice (DOJ) on February 27 requested a court to delay the refund process by about four months. The DOJ emphasized that the Supreme Court did not provide detailed guidance on subsequent procedures, and the complexity of the process requires “cautious advancement rather than rushing.”

The DOJ requests a two-stage extension totaling about four months

According to the DOJ’s application, the delay will be implemented in two steps: first, waiting for the Supreme Court’s decision to take effect, which usually takes 32 days; then, an additional 90-day buffer to “allow the political departments to consider various options.” In total, the start of the refund process will be delayed by approximately four months.

The DOJ also criticized some companies’ efforts to quickly restart refund lawsuits in the U.S. Court of International Trade (CIT), stating that their lawyers seek to accelerate the schedule mainly out of “obvious desire to become the focus of the process.”

The DOJ wrote in the documents: “The future complexity of the process requires an appropriate cautious approach rather than reckless haste.”

The DOJ also cited the 1998 port maintenance tax large-scale refund case as a precedent—at that time, U.S. importers won a $730 million refund judgment in CIT, but it took the government years to finally disburse all the funds. The DOJ emphasized that the amount involved in the Trump tariffs case far exceeds that case, making it more difficult to handle.

Democrats propose legislation to complete refunds within 180 days with interest

Following the Supreme Court ruling, Senate Democrats quickly introduced legislation to push the refunds through institutional measures.

Led by Senators Ron Wyden, Edward Markey, and Jeanne Shaheen, the bill has been signed by 22 Senate Democrats. It requires U.S. Customs and Border Protection (CBP) to complete refunds within 180 days and pay interest on the refunded amounts.

According to data cited by the senators, tariffs imposed under the International Emergency Economic Powers Act have generated approximately $175 billion for U.S. Treasury.

Wyden stated in a release: “Trump’s illegal tax scheme has caused lasting harm to American families, small businesses, and manufacturers. Helping those most in need get their money back as soon as possible is a crucial first step.”

Trump opposes the ruling; Supreme Court dissent warns of fiscal impact

Regarding the Supreme Court decision, Trump posted on Truth Social earlier on February 27 with strong language. He wrote: “Countries and companies that have taken advantage of the U.S. for decades can now, with this extremely disappointing ruling, get a ‘windfall’ of unprecedented ‘unexpected wealth,’ which makes no sense. Is there a possibility for reconsideration or rehearing of this case?”

Although Trump said he would explore options for a rehearing, the DOJ did not explicitly state in its February 27 filing that it plans to request a rehearing from the Supreme Court.

Regarding the potential impact of refunds, Supreme Court dissenting Justice Brett Kavanaugh also echoed concerns in his dissent.

He wrote: “Refunding billions of dollars will have a significant impact on U.S. finances,” and pointed out that the Court did not mention how the government should return the amounts collected from importers, admitting that the process is “likely to be a tangled mess.”

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