This is going to be such a continued mess. Refund it to the companies that paid the tariffs, it's quite the windfall. Consumer refunds ain't gonna happen.
Economically, under usual times, the best thing to do with it would be to pay off some national debt with it, the deficit is out of control. But with $38T of debt, nothing really makes a dent.
Of course it's worth noting that CBP repeatedly argued in its previous court filings that there was no need for an injunction to halt the tariffs while they were being litigated, because if the tariffs were found to be unlawful, it could easily refund them.
For instance:
> In other words, plaintiffs’ asserted irreparable harm is the purported inability to obtain a refund after a final and unappealable decision because of liquidation. But that asserted harm is nonexistent here because defendants have made very clear—both in this case and in related cases—that they will not object to the Court ordering reliquidation of plaintiffs’ entries subject to the challenged IEEPA duties if such duties are found to be unlawful. Because defendants’ representations make clear that liquidation will not interfere with the availability of refunds after a final decision, plaintiffs cannot be irreparably harmed by liquidation.
We need some mechanism in litigation (and imho in public life in general) that requires claims to be secured in some way. That is, if you go into court and make an argument like this, you have to chain it to consequences, such as being stripped of specific legal consequences or losing 10% of your shares or whatever.
It's illegal to commit perjury, but there are no real consequences for making bous legal arguments, and lawyers are structurally incentivized to make tacit misrepresentations on behalf of their clients - that is, to make inflated or handwavey claims in the hope that they're not challenged during the fact-finding stage, or even stipulated, due to an assumption of basic good faith.
> because if the tariffs were found to be unlawful, it could easily refund them.
I think it's worth emphasizing that the US government argued not only that it could issue refunds, but that it would issue refunds and that it would not oppose an order to do so. In addition to the quote from the US government's opposition to a motion for preliminary injunction, there are these quotes mentioned in the opinion for the linked order [0]:
> [E]ven if future entries are liquidated, defendants do not intend to oppose the [c]ourt’s authority to order reliquidation.... Such reliquidation would result in a refund of all duties determined to be unlawfully assessed, with interest.
> Defendants “will not oppose the [c]ourt’s authority to order reliquidation of entries of merchandise subject to the challenged IEEPA duties and that they will refund any IEEPA duties found to have been unlawfully collected, after a final and unappealable decision has been issued finding the duties to have been unlawfully collected and ordering defendants to refund the duties.”
> “If tariffs imposed on plaintiffs during these appeals are ultimately held unlawful, then the government will issue refunds to plaintiffs, including any post-judgment interest that accrues.”
> For any plaintiff who is an importer, even if a stay is entered and defendants do not prevail on appeal, plaintiffs will assuredly receive payment on their refund with interest. ‘[T]here is virtually no risk’ to any importer that they ‘would not be made whole’ should they prevail on appeal. The most ‘harm’ that could incur would be a delay in collecting on deposits. This harm is, by definition, not irreparable. Plaintiffs will not lose their entitlement to a refund, plus interest, if the preliminary injunction is stayed, and they are guaranteed payment by defendants should the [c]ourt’s decision be upheld. And defendants do not oppose the reliquidation of any entries of goods subject to IEEPA duties paid by plaintiffs that are ultimately found to be unlawful after appeal.
> To the extent that any future entries are liquidated, the [c]ourt may order reliquidation of entries subject to the challenged de minimis exemption if the duties paid by Axle are, in a final and unappealable decision, found to have been unlawfully collected. Such reliquidation would result in a refund of all duties determined to be unlawfully assessed, with interest.
> U.S. Customs and Border Protection told a Court of International Trade judge on Friday that it is not currently able to comply with his order to begin refunding reciprocal tariffs imposed last year by President Donald Trump, which the Supreme Court recently ruled are illegal.
> ...
> “Customs knows how to do this,” Eaton said during a court hearing on Wednesday. “They do it every day. They liquidate entries and make refunds.”
It seems that CBP doesn't even provide a _reason_ for their inability to comply with the order (or this is some bad reporting and the reason was left out). I find that humorous and disappointing.
We spent this whole time up until now exclaiming that it was actually the consumer who pays the tariffs, and now it’s the corporation that gets a “refund”.
Thankfully we have the actual court filing to refer to get the full picture, in which CBP says they are working on a way to process refunds more efficiently than they are able to today, and they aim to do so within 45 days: https://storage.courtlistener.com/recap/gov.uscourts.cit.193...
The CBP seems to be asserting that they lack the technical resources to issue the refunds in a timely fashion. Thus, when they finally comply, they (well, the US taxpayer) will end up paying more interest - probably around $20M/day (assuming 4% and $175B in illegal tariffs collected).
Perhaps this Administration should ask Musk to bring in a team to revamp the systems involved to get these refunds "in the mail" quickly. The DOGE team must be done with the Social Security system rewrite by now so may be available for this task. Maybe Big Balls is free this weekend to take care of this...
17 comments
[ 4.0 ms ] story [ 42.3 ms ] threadFor instance:
> In other words, plaintiffs’ asserted irreparable harm is the purported inability to obtain a refund after a final and unappealable decision because of liquidation. But that asserted harm is nonexistent here because defendants have made very clear—both in this case and in related cases—that they will not object to the Court ordering reliquidation of plaintiffs’ entries subject to the challenged IEEPA duties if such duties are found to be unlawful. Because defendants’ representations make clear that liquidation will not interfere with the availability of refunds after a final decision, plaintiffs cannot be irreparably harmed by liquidation.
https://storage.courtlistener.com/recap/gov.uscourts.cit.172...
We need some mechanism in litigation (and imho in public life in general) that requires claims to be secured in some way. That is, if you go into court and make an argument like this, you have to chain it to consequences, such as being stripped of specific legal consequences or losing 10% of your shares or whatever.
It's illegal to commit perjury, but there are no real consequences for making bous legal arguments, and lawyers are structurally incentivized to make tacit misrepresentations on behalf of their clients - that is, to make inflated or handwavey claims in the hope that they're not challenged during the fact-finding stage, or even stipulated, due to an assumption of basic good faith.
I think it's worth emphasizing that the US government argued not only that it could issue refunds, but that it would issue refunds and that it would not oppose an order to do so. In addition to the quote from the US government's opposition to a motion for preliminary injunction, there are these quotes mentioned in the opinion for the linked order [0]:
> [E]ven if future entries are liquidated, defendants do not intend to oppose the [c]ourt’s authority to order reliquidation.... Such reliquidation would result in a refund of all duties determined to be unlawfully assessed, with interest.
> Defendants “will not oppose the [c]ourt’s authority to order reliquidation of entries of merchandise subject to the challenged IEEPA duties and that they will refund any IEEPA duties found to have been unlawfully collected, after a final and unappealable decision has been issued finding the duties to have been unlawfully collected and ordering defendants to refund the duties.”
> “If tariffs imposed on plaintiffs during these appeals are ultimately held unlawful, then the government will issue refunds to plaintiffs, including any post-judgment interest that accrues.”
> For any plaintiff who is an importer, even if a stay is entered and defendants do not prevail on appeal, plaintiffs will assuredly receive payment on their refund with interest. ‘[T]here is virtually no risk’ to any importer that they ‘would not be made whole’ should they prevail on appeal. The most ‘harm’ that could incur would be a delay in collecting on deposits. This harm is, by definition, not irreparable. Plaintiffs will not lose their entitlement to a refund, plus interest, if the preliminary injunction is stayed, and they are guaranteed payment by defendants should the [c]ourt’s decision be upheld. And defendants do not oppose the reliquidation of any entries of goods subject to IEEPA duties paid by plaintiffs that are ultimately found to be unlawful after appeal.
> To the extent that any future entries are liquidated, the [c]ourt may order reliquidation of entries subject to the challenged de minimis exemption if the duties paid by Axle are, in a final and unappealable decision, found to have been unlawfully collected. Such reliquidation would result in a refund of all duties determined to be unlawfully assessed, with interest.
[0]: https://www.cit.uscourts.gov/sites/cit/files/25-154.pdf
> ...
> “Customs knows how to do this,” Eaton said during a court hearing on Wednesday. “They do it every day. They liquidate entries and make refunds.”
It seems that CBP doesn't even provide a _reason_ for their inability to comply with the order (or this is some bad reporting and the reason was left out). I find that humorous and disappointing.
Can I use this same argument to avoid paying my taxes because I spent all my income and didn’t set anything aside? No. Then?
We spent this whole time up until now exclaiming that it was actually the consumer who pays the tariffs, and now it’s the corporation that gets a “refund”.
That’s my money, assholes, give it back to me.
See paragraphs 27-29.
Even the full text of the article says this.
What cult brought us this mess?
Perhaps this Administration should ask Musk to bring in a team to revamp the systems involved to get these refunds "in the mail" quickly. The DOGE team must be done with the Social Security system rewrite by now so may be available for this task. Maybe Big Balls is free this weekend to take care of this...
"... told Court of International Trade Judge Richard Eaton it cannot currently comply ..."
Note the word "currently."
"CBP suggested it could begin issuing refunds by late April after revamping its technology."