Supreme Court voids 2025 tariffs

Why it matters

The Supreme Court on February 20, 2026, held that the International Emergency Economic Powers Act did not authorize President Donald Trump’s 2025 tariffs, voiding a central piece of his trade program. The ruling came in *Learning Resources, Inc. v. Trump*, a case the court took before judgment from the D.C. Circuit. U.S. Customs and Border Protection has since begun building a dedicated process for refunding duties collected under the emergency-power regime. The immediate fight has shifted from whether the tariffs were lawful to how importers get their money back. CBP says it is developing a Consolidated Administration and Processing of Entries, or CAPE, function inside the Automated Commercial Environment to handle valid refund requests, including interest, rather than forcing companies to file entry by entry. That administrative step has pulled customs brokers, logistics providers and large importers into a new round of claims work. (supremecourt.gov) ### Which tariffs did the court strike down? The Supreme Court said in its February 20 opinion that the question before it was whether IEEPA authorizes the president to impose tariffs. The opinion answered no, rejecting the administration’s use of a statute historically tied to sanctions and other emergency economic controls as a source of tariff authority. The government’s own filings had framed the dispute around tariffs imposed under a set of 2025 proclamations and executive orders tied to declared national emergencies. (cbp.gov) Those filings argued the measures were needed to address trade deficits and other threats, but the court’s ruling cut off that theory. ### How are refunds supposed to work now? (supremecourt.gov) CBP says valid IEEPA-duty refunds will be processed through CAPE, a batch system designed to consolidate claims. The agency’s fact sheet says the tool is meant to cover duties paid under IEEPA and to issue validated refunds once requests are submitted and reviewed. The agency’s public FAQ says the process applies to duties imposed under IEEPA “as authorized by court order or applicable law,” language that tracks the post-ruling cleanup now under way. (supremecourt.gov) For importers, that means assembling entry data, proving eligibility and coordinating with brokers and carriers that made filings on their behalf. ### Why are UPS, Walmart and Cardinal Health part of the story? (cbp.gov) UPS has been identified in recent reporting as one of the first logistics operators processing eligible refunds tied to the ruling, showing how carriers and intermediaries can become the practical gatekeepers for importers seeking repayment. Walmart and Cardinal Health have also been identified in reporting as companies that disclosed refund claims or tariff-related exposures. Those disclosures matter because they put named corporate claimants and large dollar amounts behind what might otherwise look like a technical customs dispute. (cbp.gov) Court documents cited in recent reporting have also raised the prospect of a roughly $10 billion refund error inside the administration’s system. I have not independently reviewed those court filings here, but the claim has circulated as part of the broader dispute over how much money the government may have to return. ### Why does the refund machinery matter beyond the courtroom? (newsweek.com) CBP’s decision to create a dedicated refund track shows the government expects a volume of claims large enough to require new processing infrastructure. Treasury Secretary Scott Bessent said in earlier reporting that an adverse Supreme Court ruling could force the government to refund “about half” of the tariff revenue then expected to be collected, a figure he described as a major hit to the Treasury. (newsweek.com) For companies, the next milestones are procedural rather than political. CBP says CAPE is the channel for declarations and batch processing, and the agency’s refund page and FAQ are where importers, brokers and carriers will find the operating rules as claims move forward. (cbp.gov) (newsweek.com)

Key numbers

• The Supreme Court on February 20, 2026, ruled that the International Emergency Economic Powers Act did not authorize President Donald Trump’s 2025 tariffs.
• The Supreme Court on February 20, 2026, held that the International Emergency Economic Powers Act did not authorize President Donald Trump’s 2025 tariffs, voiding a central piece of his trade program.
• The Supreme Court said in its February 20 opinion that the question before it was whether IEEPA authorizes the president to impose tariffs.
• The government’s own filings had framed the dispute around tariffs imposed under a set of 2025 proclamations and executive orders tied to declared national emergencies.

What happens next

• (supremecourt.gov) CBP says valid IEEPA-duty refunds will be processed through CAPE, a batch system designed to consolidate claims.
• I have not independently reviewed those court filings here, but the claim has circulated as part of the broader dispute over how much money the government may have to return.
• (newsweek.com) CBP’s decision to create a dedicated refund track shows the government expects a volume of claims large enough to require new processing infrastructure.

Sources

• supremecourt.gov
• cbp.gov
• supremecourt.gov
• cbp.gov
• cbp.gov
• newsweek.com
• newsweek.com

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