by Dennis Crouch
The Federal Circuit’s role as the appellate court for international trade disputes has thrust it into the center of the most consequential separation-of-powers case in a generation. On February 20, 2026, the Supreme Court affirmed the Federal Circuit’s en banc ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. Learning Resources, Inc. v. Trump, 607 U.S. ___ (2026); Trump v. V.O.S. Selections, Inc., 607 U.S. ___ (2026). And today, the Federal Circuit dissolved the stay that had held its mandate in abeyance since August 2025, ordering its mandates to “issue forthwith.” V.O.S. Selections, Inc. v. Trump, Nos. 2025-1812, -1813 (Fed. Cir. Mar. 2, 2026) (en banc per curiam). The case now returns to the Court of International Trade (CIT), which faces the formidable task of overseeing what could be the largest government refund obligation in American history: an estimated $175 billion in IEEPA tariff collections that the nation’s highest court has declared unlawful.
The briefing on the mandate motion offers a window into the pace of potential refunds. Former US Solicitor Neal Katyal (now with Milbank), representing the V.O.S. plaintiffs, filed the motion on February 24, arguing that the Supreme Court’s judgment satisfied the express condition this Court had set for releasing the mandate and that every day of delay inflicted real harm on the small businesses awaiting refunds. The motion quoted Treasury Secretary Bessent’s public statement that refunds would not issue until the CIT ordered them, and President Trump’s suggestion that the question would “get litigated for the next two years.” The government’s opposition, filed by the DOJ Appellate Staff, urged the court to wait at least until the Supreme Court formally sends down its certified judgment (32 days after entry under Supreme Court Rule 45.3), and cross-moved for a 90-day stay to “allow the political branches an opportunity to consider options.” The government invoked Northern Pipeline Construction Co. v. Marathon Pipe Line Co., 458 U.S. 50 (1982), where the Supreme Court stayed its own judgment to give Congress time to respond. DOJ also characterized the plaintiffs’ monetary harm as compensable rather than irreparable, and warned that the refund process would be protracted regardless. Katyal’s reply, filed over this past weekend was pointed: the government “cites nothing” for the proposition that this Court must wait for the Supreme Court’s certified judgment and the government notably did not deny the force of its own stipulations guaranteeing refunds to all similarly situated plaintiffs. (more…)











