Supreme Court Overturns Trump Tariffs, Opens Door to Refunds

On February 17, 2026, the U.S. Supreme Court ruled that the federal government illegally collected more than $133 billion in tariffs imposed under the International Emergency Economic Powers Act (IEEPA) during President Donald Trump’s administration. The decision invalidated the tariffs that had been applied to a wide range of imported goods. The ruling creates a legal pathway for businesses that paid the tariffs to seek refunds.

Refund Process: Who Handles the Claims?

Customs and Border Protection (CBP) originally collected the tariffs, so the agency is expected to administer the refund process once a formal mechanism is established. The White House has not yet announced a specific procedure. In the absence of an official process, companies will likely file claims in the Court of International Trade, which can order CBP to issue refunds to individual firms.

How the Court Will Manage the Refunds

Historically, the Court of International Trade has issued refunds when it found a tax to be invalid, though on a smaller scale. Legal experts anticipate that the court will adopt a procedure similar to the 1998 Supreme Court decision that overturned a harbor maintenance tax, which also led to refunds. Because of the large number of potential claims, the court may appoint an administrator or special master to review each case rather than handling them one by one.

Timeline for Refunds

According to trade law professor Rachel Brewster of Duke Law School, the entire refund process—whether through CBP, a class‑action suit, or court administration—could take up to two years. The Supreme Court’s dissenting opinion, written by Justice Brett Kavanaugh, warned that the volume of refund requests could become a mess, citing billions of dollars owed to importers who have already passed the costs onto consumers.

Companies Seeking Refunds

More than 1,000 companies have filed lawsuits to recover money paid under the IEEPA tariffs. The lawsuits include small firms such as a wine importer and an educational toy retailer, as well as large corporations like Toyota and Costco. These companies argue that the tariffs were imposed without proper legal authority and that they should be reimbursed for the amounts paid.

Individual Consumers and Personal Orders

Consumers who purchased imported goods that were subject to the IEEPA tariffs may also seek refunds, but