Supreme Court of the United States strikes down Trump tariffs; $133B in refund now in question

WASHINGTON — The Supreme Court has struck down former President Donald Trump’s sweeping tariffs, invalidating one of the most consequential trade measures of his second term and setting the stage for a complex legal fight over $133 billion in already collected import taxes.

In a 6–3 ruling issued Friday, the high court found that Trump improperly invoked the International Emergency Economic Powers Act (IEEPA) to impose double-digit tariffs on nearly every country. The justices ruled that the 1977 law does not grant the president authority to tax imports, a power reserved for Congress.

While the decision voids the tariffs moving forward, it leaves unresolved a critical question: What happens to the billions of dollars already paid by importers?

Refund process expected to be lengthy, complex

Trade lawyers say companies that paid the tariffs are likely to seek refunds, though the process could be protracted and legally contentious.

“It’s going to be a bumpy ride for awhile,” said Joyce Adetutu, a partner at Vinson & Elkins. She noted that both the courts and importers will face significant challenges given the “substantial” amount involved.

As of mid-December, U.S. Customs and Border Protection had collected $133 billion under the now-invalidated tariffs. The refund process is expected to involve the customs agency, the New York-based United States Court of International Trade, and other lower courts.

Legal analysts estimate refunds could take 12 to 18 months to be processed. Some warn the process may stretch even longer as additional lawsuits emerge.

In a dissenting opinion, Justice Brett Kavanaugh criticized the majority for not addressing how the government should return the funds. He warned that the refund effort could become a “mess,” echoing concerns raised during oral arguments by Justice Amy Coney Barrett, who joined the majority.

Trump, speaking to reporters Friday, criticized the ruling and predicted extended litigation. “We’ll end up being in court for the next five years,” he said.

Businesses line up; consumers unlikely to benefit

Major companies including Costco, Revlon, and Bumble Bee Foods had already filed lawsuits seeking refunds even before the Supreme Court decision, positioning themselves at the front of what could become a lengthy claims process.

Legal experts say the government may attempt to use existing customs refund procedures, which typically address clerical or technical errors. However, the scale of this case, involving thousands of importers and tens of billions of dollars, is unprecedented.

Some analysts expect the government to establish a streamlined system, possibly through a dedicated online claims portal. Others caution that importers may be required to pursue relief through court proceedings.

Consumers, meanwhile, are unlikely to receive direct compensation. Although companies passed on tariff costs through higher prices, those increases would be difficult to attribute to specific levies in refund claims.

Broader economic and political impact

Economists say the removal of the tariffs could ease inflationary pressure, though the overall economic impact may be modest. Many countries still face sector-specific tariffs, and Trump has indicated he may pursue alternative legal pathways to reimpose trade measures.

The ruling has also sparked political responses. Illinois Gov. JB Pritzker is demanding $8.7 billion in refunds, claiming the tariffs cost each of the state’s 5.11 million households approximately $1,700. He warned that failure to return the funds would prompt “further action.”

In Nevada, Treasurer Zach Conine submitted a $2.1 billion reimbursement request, stating he has a responsibility to recover “every single dollar” taken from Nevada families.

Legal observers predict years of litigation across multiple jurisdictions as businesses, states, and possibly manufacturers seek to clarify entitlement to refunds.

For now, while the tariffs have been struck down, the battle over who gets the money and how is only beginning.

Despite the ruling by the Supreme Court of the United States striking down his emergency-based tariffs, Donald Trump said he will sign an executive order to impose a 10% global tariff under the federal law known as Section 122, according to the latest update published by the Associated Press at 3:14 AM GMT+8 on February 21, 2026. The president also indicated that he is exploring additional legal avenues to pursue further tariffs.