US judge warns of risks in Trump administration's appeal over tariff refunds

A judge at the U.S. Court of International Trade has submitted a letter to the Justice Department warning of the risks associated with the Trump administration's appeal against his ruling to refund tariffs that the Supreme Court had deemed illegal, Bloomberg News reported on the 3rd (local time).

In a letter made public on the same day, Judge Richard Eaton of the Court of International Trade suggested that if the Justice Department succeeds in requesting immediate intervention from the appellate court, it could affect the online claims system, which has processed at least $85 billion in refunds to date.

The Justice Department argues that this online claims system was built under the government's "own authority," not based on Judge Eaton's order.

In response, Judge Eaton acknowledged the government's efforts to process refunds but pointed out that interfering with the ongoing legal proceedings would hinder the resolution of the case.

Judge Eaton attached a 30-page document showing that U.S. government agencies created this online claims system in accordance with his ruling, not as a "voluntary" construction as the government claims.

While it is rare for a judge to directly counter a party appealing his ruling, the recent tariff refund lawsuit process has shown such an unusual pattern, Bloomberg noted.

Previously, Judge Eaton presided over thousands of lawsuits filed by importers with the Court of International Trade demanding tariff refunds. Most of these lawsuits were on hold until the Supreme Court ruled in February that so-called 'mutual tariffs' were illegal.

The Liberty Justice Center stated that the progress in tariff refund applications under the illegal International Emergency Economic Powers Act (IEEPA) is due to the court ordering the government to take action.

The Customs and Border Protection (CBP) stated that $85 billion in tariff refund claims are being processed or are being delivered to importers.