On May 29, 2026, the federal government notified the court in V.O.S. Selections, Inc. v. United States, Court No. 25-00066, that it intends to appeal the U.S. Court of International Trade’s universal injunction requiring U.S. Customs and Border Protection (CBP) to issue refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
The appeal could have significant consequences for importers seeking IEEPA tariff refunds, particularly those that have not filed their own lawsuits challenging liquidated tariff payments. If the government obtains a stay or prevails on appeal, importers who have not filed their own lawsuits could lose their pathway to refunds on liquidated entries.
Court of International Trade Ordered IEEPA Tariff Refunds
Several importers filed lawsuits in the Court of International Trade challenging the legality of tariffs imposed under IEEPA. On April 17, 2026, the Court entered an injunction directing IEEPA tariff refunds. The Court later expanded that relief through a universal injunction requiring CBP to reliquidate entries and issue refunds to all affected importers, including companies that had not filed lawsuits.
CBP is currently processing approximately $85 billion in refunds for tariffs on unliquidated entries, representing over half the total IEEPA tariffs paid. According to the agency, refunds are being issued in phases through its CAPE processing system because immediate full compliance is not feasible.
Federal Government Plans Appeal of Universal IEEPA Tariff Refund Order
In its recent filing, the government stated that it “intend[s] to appeal the Court’s universal injunction and to seek a stay of the injunction except as to the particular importer plaintiffs in each case in which the Court has entered the injunction.”
The government argues that the universal injunction exceeds the Court’s jurisdiction and equitable authority under Trump v. CASA, Inc., 606 U.S. 831, 839 (2025).
If the government files the appeal and obtains a stay from the U.S. Court of Appeals for the Federal Circuit, the universal refund order would be paused while the appeal is pending. Critically, the government has indicated the appeal targets only the universal scope of the injunction, relief for the named plaintiffs would remain intact.
What the Appeal Means for Importers Seeking IEEPA Tariff Refunds
The appeal creates the greatest uncertainty for importers that paid IEEPA tariffs but have not filed their own cases.
The universal injunction currently provides a mechanism for those importers to obtain refunds on liquidated entries without pursuing individual litigation. If the Federal Circuit stays the injunction, or ultimately reverses the universal relief order, importers that are not plaintiffs may no longer have access to those refunds.
By contrast, importers that are already parties to pending IEEPA tariff refund lawsuits should continue to benefit from importer-specific relief ordered by the court. This distinction makes the question of whether to file suit increasingly urgent for importers who have not yet done so.
Should Importers File an IEEPA Tariff Refund Lawsuit?
Importers evaluating whether to pursue IEEPA tariff refund claims should be aware that the Court of International Trade has established a streamlined process for new cases.
Under Administrative Order 25-02, new cases challenging tariffs based on IEEPA and the relevant executive orders are automatically stayed upon filing. No order of assignment is issued before entry of the stay, and the Clerk maintains a schedule of all stayed cases. The Court has indicated it expects to determine next steps for these cases following a final, unappealable decision in V.O.S. Selections.
As a result, filing a new IEEPA tariff refund lawsuit generally does not require immediate discovery, motion practice, or hearings. Instead, the primary benefit of filing is preserving the importer’s position while the legality of the tariffs and the scope of available funds continue to be litigated.
For importers who have paid IEEPA tariffs on liquidated entries but have not yet filed suit, initiating a case now may be the most efficient step to preserving refund rights while the appeal proceeds.
Legal Guidance for IEEPA Tariff Refund Claims
Varnum attorneys represent importers pursuing IEEPA tariff refund claims before the Court of International Trade. Businesses with questions regarding IEEPA tariffs, CBP refund procedures, tariff litigation, or potential refund eligibility should contact a member of Varnum’s Litigation Practice Team.
