Tariff Refund Deadlock: Justice Department Seeks to Delay Billions of Dollars in Refunds by Four Months

LootboxPhobia · 2026-02-28T04:30:35+00:00

The U.S. Department of Justice requests a four-month delay in processing the tariff refund procedure, citing the complexity of the situation which could affect billions of dollars in corporate funds. The government acknowledges that refunds will be made but has not guaranteed full refunds, and the new tariffs have increased the difficulty of refunds. Affected companies have expressed strong dissatisfaction with the government's delay and are concerned about the financial impact.

LootboxPhobia

2026-02-28 04:30:35

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The U.S. Department of Justice (DOJ) Requests a Four-Month Delay Due to “Complexity”

The U.S. Department of Justice (DOJ) has taken action to pause the next phase of a major legal battle involving tariff refunds. This move could result in billions of dollars in corporate funds remaining withheld by the government for the foreseeable future.

In documents filed last Friday evening, government lawyers requested the U.S. International Trade Court to wait up to 120 days before setting a schedule for the refund process. Previously, the Supreme Court overturned the earlier trade tariffs with a 6-3 ruling on February 20.

The government’s strategy appears to focus on buying time for the “political departments” to assess the next steps. DOJ lawyers argued that the “complexity” of the situation warrants slowing down rather than proceeding at a “very rapid pace.”

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While the government acknowledges that the refund process will eventually proceed, it does not fully guarantee complete refunds. The DOJ pointed out that any financial losses could be “remedied” through future payments with interest, downplaying immediate liquidity concerns.

New Tariffs Make Refunds More Complex

The delay request coincides with the president recently imposing new global tariffs authorized under separate legislation. The DOJ noted in the documents that illegal tariffs have been “replaced by powerful new tariffs.”

The government did not specify how these new tariffs might impact the calculation of refunds. Analysts believe the government may be seeking ways to arrange payment methods to minimize the Treasury’s net cash outflow.

Lawyers representing affected importers reacted strongly to the proposed delay. They accused the government of stalling to avoid the direct financial impact of the Supreme Court’s ruling.

For sectors ranging from retail to manufacturing, this four-month “cooling-off period” represents a significant obstacle. Many companies had hoped to recover these funds by the second half of 2026 to offset costs from current new trade barriers.

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