The US Justice Department has moved to pause the next phase of a massive legal battle over tariff refunds.
The Justice Department cites "complexity" in its request for a four-month procedural delay.
The US Justice Department has moved to pause the next phase of a massive legal battle over tariff refunds. This move could potentially keep billions of dollars in corporate capital in government hands for the foreseeable future.
In a filing late Friday, government lawyers asked the US Court of International Trade to wait up to 120 days before setting a timetable for the refund process. This follows the Supreme Court's landmark 6-3 decision on February 20, which overturned previous trade levies.
The administration's strategy appears to be focused on buying time for the "political branches of government" to evaluate their next steps. Justice Department lawyers argued that the "complexity" of the situation justifies a slower pace rather than "breakneck speed." While acknowledging that the refund process will eventually occur, the administration stopped short of full assurances of full reimbursement. The Justice Department noted that any financial damage is "recoverable" through future payments with interest, downplaying immediate liquidity concerns.
New Tariffs Complicate the Path to Corporate Payments
The deferment request coincides with the President's recent move to impose new global tariffs under separate legal authority. In its statement, the Justice Department noted that the illegal charges have already been "replaced by aggressive new tariffs."
The government did not explicitly state how these new duties might affect refund calculations. Analysts believe the administration may be seeking ways to structure payments to minimize the net cash outflow from the Treasury.
Lawyers representing the affected importers reacted sharply to the proposed deferment, accusing the administration of dragging its feet to avoid the immediate fiscal impact of the Supreme Court's ruling. For sectors ranging from retail to manufacturing, this four-month "cooling-off period" represents a significant setback. Many companies had hoped to recoup this capital by the second half of 2026 to offset the costs of the new trade barriers.