US court denies Trump bid to pause tariff refund lawsuits after Supreme Court ruling

The Court of Appeals for the Federal Circuit rejected the Trump administration's request Monday to delay legal proceedings in cases seeking refunds for tariffs that the Supreme Court last month declared were unlawfully imposed. The administration had sought a 90-day stay following the Supreme Court's 6-3 ruling that the International Emergency Economic Powers Act does not grant presidential authority for broad tariffs. The decision allows a group of five small businesses to continue their refund lawsuits at the US Court of International Trade.

Legal Framework and Constitutional Challenge

The Supreme Court's landmark decision affirmed that the Constitution "very clearly" grants Congress, not the executive branch, the power to tax—including authority over tariffs. Chief Justice John Roberts wrote for the majority that "the Framers did not vest any part of the taxing power in the Executive Branch." The ruling struck at the legal foundation of Trump's global tariff push, which had relied on IEEPA as its statutory basis.

Administration's Workaround Attempt

Hours after the Supreme Court ruling, Trump sought to circumvent the decision by imposing a 10% global tariff under Section 122 of the 1974 Trade Act, which allows temporary duties for up to 150 days to address balance-of-payments deficits. The White House later indicated an intention to raise the rate to 15%, though officials clarified that only the 10% decree has been formally signed. Section 122 requires congressional approval after 150 days, a requirement the administration has signaled it may attempt to avoid through alternative legal interpretations.

Implications and Next Steps

The appellate court's refusal to delay proceedings means the tariff refund lawsuits will now advance, potentially exposing the government to billions in reimbursement claims. The cases test the extent to which importers can recover duties collected under the now-invalidated IEEPA authority. With the administration pivoting to Section 122, legal experts anticipate continued battles over executive tariff authority and the separation of powers in trade policy.