The Trump administration is defending its effort to limit refunds of billions of dollars in tariffs that were collected before the Supreme Court struck down President Donald Trump's global tariff regime earlier this year.

The dispute centers on whether the government must repay all importers who paid the now-invalid tariffs or only those whose claims remain open.

The administration has already approved tens of billions of dollars in refunds but is appealing a Court of International Trade order requiring broader repayment.

"The message from the government is pretty straightforward: We don't have the authority to issue these refunds, and unless a court orders us to repay a specific company, we're not going to do it," a former Trump administration official and trade lawyer close to the White House told Politico.

"They're ready to claw back what they know they legally can," the lawyer added.

The Justice Department argues the trade court exceeded its authority by ordering universal refunds. Legal experts said the administration may have a viable case.

"That issue could really go both ways," said James Kim, an international trade partner at ArentFox Schiff, adding that "the DOJ has good arguments" and that "it's going to be interesting to see how this plays out."

Matthew Seligman, a lawyer representing importers seeking refunds, said, "It was inevitable that the government would appeal [Court of International Judge Richard Eaton's April order requiring universal tariffs] and win," arguing the ruling conflicted with Supreme Court precedent.

At Tuesday's hearing, U.S. Customs and Border Protection executive assistant commissioner for trade Susan Thomas is expected to testify about the government's refund process.

In a court filing, Thomas said, "Should the court's order become final and require reliquidation of entries of all importers, CBP intends to fully comply with the court's final decision as expeditiously as possible."

Eaton has pressed the administration for details on its repayment plans and said the hearing is intended "to ascertain if it is the government's policy to return all of the unlawfully collected duties either by complying with the court's order or by some other means."

Importers and their attorneys are preparing additional legal challenges, including a proposed class-action lawsuit.

Sara Albrecht, chair and CEO of the Liberty Justice Center, praised Eaton for being "very proactive in directing this case" and said Tuesday's hearing "will explain a lot on what the government is thinking and their positions."

She added, "We've got plans A, B, C, and D for June 9. We're ready."

Some businesses say the administration is intentionally making refunds difficult to obtain. Jay Foreman, CEO of toy company Basic Fun!, said, "It's almost like the insurance companies, they just deny your claim, and it's only the people that are willing to fight through four or five, six denials that get paid."

"They figure a bunch of people will drop out," said Foreman.