Trump IRS suit revived; DOJ fights tariff refunds

On May 29, 2026, the U.S. Justice Department filed notice that it will appeal a trade‑court ruling authorizing across‑the‑board refunds of disputed tariffs. The underlying order would require customs authorities to recalculate import duties for a wide set of importers, extending relief beyond the specific plaintiffs in the case.

In the same filing, the Justice Department said it will seek a stay of the universal injunction, except as to particular importer plaintiffs. If granted, the stay would limit the immediate effect of the court’s order while the appeal proceeds, confining any refunds or recalculations to the named parties rather than to all affected importers.

The government’s move sets up an appellate review of the judge’s authority to impose such broad tariff refunds. The outcome will help determine whether the litigation leads to sector‑wide changes in how certain import duties are assessed or whether relief remains restricted to the plaintiffs who brought the case.

The disputed tariffs at issue in the trade litigation involve duties that importers argue were improperly imposed or calculated. The court’s universal injunction, as currently framed, would require customs officials to revisit these assessments across a broad population of importers, not just those that directly challenged the measures.

By signaling an appeal focused on the court’s authority to order across‑the‑board refunds, the Justice Department is targeting the reach of the injunction rather than publicly detailing any specific changes to tariff policy. The case will continue in parallel before the trade court and the appellate court as the government pursues its requested stay.

Also on May 29, 2026, U.S. District Judge Kathleen Williams in Miami reopened President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service. The case, which had previously been resolved through a settlement, is now back before the court following new concerns about how that resolution was reached.

Judge Williams ordered Trump to respond to what she described as "grievous allegations" that the settlement was "premised on deception." The allegations include claims of collusion and questions about whether the earlier dismissal of the case was appropriate in light of the circumstances surrounding the agreement.

The judge directed the plaintiffs to respond by June 12, 2026 to these issues, including the claimed collusion, the assertion that the dismissal was based on deception, and whether the case should indeed be reopened. Their response is expected to frame the next steps in the revived litigation.

On the same day Judge Williams reopened the lawsuit, a separate judge issued a temporary hold on roughly $1.776 billion connected to the Trump‑IRS settlement plan. This order adds a financial constraint on the implementation of the prior agreement while the underlying allegations are examined.

The temporary hold, combined with Judge Williams’s order, creates additional legal hurdles for moving forward with the original settlement structure. The actions mean both the validity of the settlement and access to the associated pool of funds will be contested in the coming weeks as the courts review the parties’ submissions.

Together, the tariff case and the Trump IRS lawsuit illustrate parallel federal proceedings involving major financial stakes and questions about judicial authority. In one, the appellate process will test how broadly a trade court may extend relief to non‑plaintiff importers. In the other, a district court is reassessing whether a high‑value tax settlement was reached on a sound and transparent basis.

Key deadlines and orders are already in place: the Justice Department’s notice of appeal and planned stay request in the tariff case, and the June 12, 2026 response date for plaintiffs in the IRS lawsuit. Court rulings on the scope of the tariff injunction and on the allegations surrounding the IRS settlement will determine how both disputes proceed.