Supreme Court voids Trump tariffs

Published May 27, 2026 by The Daily Scout

- The Supreme Court on February 20, 2026 voided Donald Trump’s 2025 tariffs under IEEPA, triggering refund claims, customs confusion and new litigation. - A court filing said more than $35.5 billion in refunds had been cleared, while another report flagged a possible $10 billion overstatement. - UPS and U.S. Customs are processing eligible claims now, with importers, brokers and courts still sorting repayment procedures.

Why it matters

The U.S. Supreme Court’s February 20 ruling against Donald Trump’s 2025 tariffs did not just erase a trade policy. It opened a fight over who gets paid back, how fast, and under what paperwork. UPS has told customers it is processing refunds for eligible shipments with U.S. Customs and Border Protection, while importers and customs lawyers are combing old entries for money that can still be reclaimed. Court filings and company disclosures now show the unwinding is moving from constitutional law into freight systems, brokerage records and federal dockets. ### Which tariffs did the court actually strike down? The Supreme Court held 6-3 on February 20 that the International Emergency Economic Powers Act does not authorize a president to impose tariffs, according to legal summaries of the decision in *Learning Resources, Inc. v. Trump* and *Trump v. V.O.S. Selections, Inc.*. The ruling invalidated the “reciprocal” tariffs Trump imposed in April 2025 and other IEEPA-based duties tied to trafficking and immigration claims. (newsweek.com) Other tariffs imposed under separate statutes were not automatically affected. Thomson Reuters said the decision sharply limited presidential tariff power under IEEPA and left immediate uncertainty over how already collected duties would be refunded. Trade lawyers have since pointed importers toward administrative claims, protests and litigation depending on how entries were filed and whether duties were paid directly or through intermediaries. (ropesgray.com) ### Why are UPS and other logistics firms in the middle of this? UPS said on its tariff update page that it is working with Customs and Border Protection to return funds to customers where applicable, starting with tariff payments made from January 30, 2026, along with pending tariff payments. That puts carriers and customs brokers in the position of tracing who advanced the money, whose shipment was covered, and whether the customer or an intermediary is entitled to reimbursement. (thomsonreuters.com) USA Today reported earlier that UPS and FedEx had said they would return tariff refunds to customers after the court ruling. For companies that relied on express carriers or brokers to clear goods, the practical question is less about the legality of the tariff than about the chain of payment inside customs records. (newsweek.com) ### How much money is at stake? A Bloomberg report on May 12 said the administration was in the process of issuing more than $35.5 billion to importers who successfully filed for refunds after the Supreme Court decision. A separate Penn Wharton Budget Model estimate said reversing the IEEPA tariffs could generate up to $175 billion in refunds, a projection that captures the wider universe of potentially affected duties rather than only claims already cleared. (usatoday.com) The *Los Angeles Times* reported on May 26 that companies were pursuing billions of dollars in repayments, while a Bloomberg analysis cited in that report found only about 5% of the Russell 3000 had publicly mentioned refunds in recent comments and filings. CNBC has separately reported that companies seeking refunds include Walmart, Apple, Nike, Home Depot, General Motors, FedEx and Costco. (bloomberg.com) ### What is the reported $10 billion mistake? A court declaration cited in reports this week said Customs and Border Protection overstated tariff refunds by at least $10 billion. One report said the agency had announced on Tuesday that it had certified roughly $20 billion in refunds so far, but the filing showed a significant overstatement in the accounting. (latimes.com) That discrepancy matters because refund totals are now being used by importers, trade groups and the administration to measure how much of Trump’s tariff system has actually been unwound. The reporting available so far points to a dispute over the numbers in court papers, not a final public reconciliation by Customs. ### Why are many companies being careful about talking about refunds? (msn.com) Politico reported on May 12 that Trump had said he would “remember” companies that did not collect tariff refunds, prompting businesses and lobbyists to weigh both the financial value of claims and the political risk of drawing attention to them. The *Los Angeles Times* similarly reported that many companies were pursuing repayments without much public discussion. (msn.com) The next steps are procedural. Customs and Border Protection, UPS, FedEx, importers and the U.S. Court of International Trade are still sorting claims, certifications and disputed totals. Future court filings and carrier notices will show how much money is returned, who receives it, and whether the government revises the refund figures already reported. (newsweek.com) (politico.com)

Key numbers

The Supreme Court on February 20, 2026 voided Donald Trump’s 2025 tariffs under IEEPA, triggering refund claims, customs confusion and new litigation.
A court filing said more than $35.5 billion in refunds had been cleared, while another report flagged a possible $10 billion overstatement.
Supreme Court’s February 20 ruling against Donald Trump’s 2025 tariffs did not just erase a trade policy.
The Supreme Court held 6-3 on February 20 that the International Emergency Economic Powers Act does not authorize a president to impose tariffs, according to legal summaries of the decision in *Learning Resources, Inc.

What happens next

A Bloomberg report on May 12 said the administration was in the process of issuing more than $35.5 billion to importers who successfully filed for refunds after the Supreme Court decision.
A separate Penn Wharton Budget Model estimate said reversing the IEEPA tariffs could generate up to $175 billion in refunds, a projection that captures the wider universe of potentially affected duties rather than only claims already cleared.
(msn.com) Politico reported on May 12 that Trump had said he would “remember” companies that did not collect tariff refunds, prompting businesses and lobbyists to weigh both the financial value of claims and the political risk of drawing attention to them.

Sources

Quick answers

What happened in Supreme Court voids Trump tariffs?

The Supreme Court on February 20, 2026 voided Donald Trump’s 2025 tariffs under IEEPA, triggering refund claims, customs confusion and new litigation. A court filing said more than $35.5 billion in refunds had been cleared, while another report flagged a possible $10 billion overstatement. UPS and U.S. Customs are processing eligible claims now, with importers, brokers and courts still sorting repayment procedures.

Why does Supreme Court voids Trump tariffs matter?

The U.S. Supreme Court’s February 20 ruling against Donald Trump’s 2025 tariffs did not just erase a trade policy. It opened a fight over who gets paid back, how fast, and under what paperwork. UPS has told customers it is processing refunds for eligible shipments with U.S. Customs and Border Protection, while importers and customs lawyers are combing old entries for money that can still be reclaimed. Court filings and company disclosures now show the unwinding is moving from constitutional law into freight systems, brokerage records and federal dockets. Which tariffs did the court actually strike down? The Supreme Court held 6-3 on February 20 that the International Emergency Economic Powers Act does not authorize a president to impose tariffs, according to legal summaries of the decision in *Learning Resources, Inc. v. Trump* and *Trump v. V.O.S. Selections, Inc.*. The ruling invalidated the “reciprocal” tariffs Trump imposed in April 2025 and other IEEPA-based duties tied to trafficking and immigration claims. (newsweek.com) Other tariffs imposed under separate statutes were not automatically affected. Thomson Reuters said the decision sharply limited presidential tariff power under IEEPA and left immediate uncertainty over how already collected duties would be refunded. Trade lawyers have since pointed importers toward administrative claims, protests and litigation depending on how entries were filed and whether duties were paid directly or through intermediaries. (ropesgray.com) Why are UPS and other logistics firms in the middle of this? UPS said on its tariff update page that it is working with Customs and Border Protection to return funds to customers where applicable, starting with tariff payments made from January 30, 2026, along with pending tariff payments. That puts carriers and customs brokers in the position of tracing who advanced the money, whose shipment was covered, and whether the customer or an intermediary is entitled to reimbursement. (thomsonreuters.com) USA Today reported earlier that UPS and FedEx had said they would return tariff refunds to customers after the court ruling. For companies that relied on express carriers or brokers to clear goods, the practical question is less about the legality of the tariff than about the chain of payment inside customs records. (newsweek.com) How much money is at stake? A Bloomberg report on May 12 said the administration was in the process of issuing more than $35.5 billion to importers who successfully filed for refunds after the Supreme Court decision. A separate Penn Wharton Budget Model estimate said reversing the IEEPA tariffs could generate up to $175 billion in refunds, a projection that captures the wider universe of potentially affected duties rather than only claims already cleared. (usatoday.com) The *Los Angeles Times* reported on May 26 that companies were pursuing billions of dollars in repayments, while a Bloomberg analysis cited in that report found only about 5% of the Russell 3000 had publicly mentioned refunds in recent comments and filings. CNBC has separately reported that companies seeking refunds include Walmart, Apple, Nike, Home Depot, General Motors, FedEx and Costco. (bloomberg.com) What is the reported $10 billion mistake? A court declaration cited in reports this week said Customs and Border Protection overstated tariff refunds by at least $10 billion. One report said the agency had announced on Tuesday that it had certified roughly $20 billion in refunds so far, but the filing showed a significant overstatement in the accounting. (latimes.com) That discrepancy matters because refund totals are now being used by importers, trade groups and the administration to measure how much of Trump’s tariff system has actually been unwound. The reporting available so far points to a dispute over the numbers in court papers, not a final public reconciliation by Customs. Why are many companies being careful about talking about refunds? (msn.com) Politico reported on May 12 that Trump had said he would “remember” companies that did not collect tariff refunds, prompting businesses and lobbyists to weigh both the financial value of claims and the political risk of drawing attention to them. The *Los Angeles Times* similarly reported that many companies were pursuing repayments without much public discussion. (msn.com) The next steps are procedural. Customs and Border Protection, UPS, FedEx, importers and the U.S. Court of International Trade are still sorting claims, certifications and disputed totals. Future court filings and carrier notices will show how much money is returned, who receives it, and whether the government revises the refund figures already reported. (newsweek.com) (politico.com)