On June 2, 2026, the Trump administration appealed a US Court of International Trade (CIT) injunction directing US Customs and Border Protection (CBP) to reliquidate all entries by all importers without applying tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The government appealed both the above-referenced universal IEEPA tariff refund order and a CIT order compelling CBP Commissioner Rodney Scott’s testimony.
Background: In a February decision, the Supreme Court held in Learning Resources Inc. et al. v. Trump that IEEPA does not confer tariff authority on the President. The CIT subsequently entered an injunction ordering CBP to refund IEEPA duties for unliquidated entries, liquidated entries for which liquidation is not final, and any liquidated entries for which liquidation is final. The CIT stayed the injunction on April 20, 2026 to allow CBP to implement a system to correct entries that had assessed IEEPA tariffs. However, when the government indicated that the system would not process refunds for entries that were liquidated and final, the CIT issued a Show Cause Order requesting briefing from the parties as to why the court should not lift the stay and order CBP to liquidate or reliquidate entries without regard to IEEPA duties for all importers. The CIT also ordered that CBP Commissioner Scott appear before the CIT to respond to the court’s questions about the IEEPA refund process.
DOJ Arguments and CIT Response: On May 29, 2026, the government submitted a statement to the CIT arguing that the injunction is unlawful. The government claimed that the injunction exceeds the CIT’s jurisdiction and equitable authority under the Supreme Court’s ruling in Trump v. CASA, Inc., which generally bars “nationwide injunctions”, because the order applies to non-litigants. The government argues that the CIT lacks jurisdiction to order an inunction on finally liquidated entries if the importer has not filed an action at the CIT to recover those duties. The CIT has responded that CASA does not apply to the refund orders at issue, citing the CIT’s “exclusive subject matter jurisdiction to hear [IEEPA tariff refund] claims.”
DOJ Appeal: On June 2, 2026, the government filed an appeal with the Court of Appeals for the Federal Circuit, challenging the injunction, as well as the order requiring CBP Commissioner Scott to appear before the CIT. The government filed a petition for a writ of mandamus from the Federal Circuit to prevent Commissioner Scott from testifying at the CIT, requesting an expedited ruling on this issue by Friday, June 5, to give officials time to decide whether to seek Supreme Court intervention before the CIT’s June 9 hearing.
Takeaways: The appeal, including a potential further detour to the US Supreme Court, may lead to further delay for importers seeking refunds paid on the IEEPA tariffs. Because the government has confirmed that it is not challenging the liquidation or reliquidation of entries for importers that individually challenged the IEEPA tariffs before the CIT, the impact of the appeal is therefore likely confined to importers who have not sought refunds via CIT litigation and/or preserved their rights to refunds on liquidated entries by filing protests. Importers who have not yet filed suit at the CIT and who have entries approaching or past final liquidation should carefully consider whether to file a protest with CBP and/or a complaint at the CIT to preserve their refund rights pending the appeal.
