Supreme Court orders tariff refunds
What happened
- The U.S. Supreme Court ruled on February 20, 2026 that the International Emergency Economic Powers Act did not authorize President Donald Trump’s tariffs. - Bloomberg estimated the government owes about $166 billion in refunds, and Walmart told CNBC it plans to use any repayment for lower prices. - Customs and Border Protection has been accepting refund applications, with importers and brokers pursuing claims through agency filings and related litigation.
Why it matters
The U.S. Supreme Court ruled on February 20 that the International Emergency Economic Powers Act did not give President Donald Trump authority to impose sweeping tariffs, ending the legal basis for duties that had been collected on imports from countries including China, Canada and Mexico. The case, *Learning Resources, Inc. v. Trump*, was decided 6-3, according to the court’s opinion. The decision set off a new phase of the trade fight: companies that paid the duties are now seeking refunds through Customs and Border Protection and through court proceedings. President Trump called the ruling a “terrible decision,” according to the Los Angeles Times. ### What exactly did the court strike down? Chief Justice John Roberts wrote that IEEPA authorizes the president to “regulate” imports during a national emergency, but not to impose tariffs, according to the Supreme Court opinion and a Congressional Research Service legal summary. The ruling covered tariffs Trump had imposed by executive order after invoking emergency powers tied to drug trafficking and trade deficits. SCOTUSblog said the court held that the tariffs exceeded powers Congress had delegated to the president under the 1977 law. (supremecourt.gov) February 20 is the key date because the court’s ruling affirmed lower-court conclusions that the tariff program was unlawful. Trade advisers and law firms have since described the decision as opening a pathway for importers to recover duties already paid, subject to filing procedures and protest requirements. ### How much money is at stake for importers? Customs and Border Protection said in a court filing cited by CNBC that the government owes roughly $166 billion in refunds overall. (supremecourt.gov) Bloomberg reported on May 12 that more than $35.5 billion in tariff refunds had already been cleared for importers who successfully filed claims. Those figures have turned what began as a constitutional fight over presidential power into a large accounting issue for importers, customs brokers and the federal government. (bakertilly.com) The Los Angeles Times reported on May 26 that companies including Cardinal Health and Walmart were among public firms pursuing refunds, while a Bloomberg analysis found only about 5% of the 3,000 largest publicly traded U.S. companies had mentioned refunds in recent comments and filings. That leaves a limited but financially significant set of companies publicly disclosing exposure tied to the now-invalid duties. (cnbc.com) ### Which companies have said something publicly? Walmart confirmed to CNBC that it has sought a tariff refund and said it would use any money it receives to invest in lower prices for shoppers. CNBC also reported that Home Depot and Target had applied for refunds. Those statements gave public confirmation that large retailers were participating in the process after weeks of uncertainty over whether some companies would avoid claims for political reasons. (latimes.com) Cardinal Health was identified by the Los Angeles Times as one of the companies pursuing refunds. The same report said corporate disclosures had begun to show material financial exposure from the tariffs, undercutting Trump’s repeated argument that foreign exporters, rather than U.S. importers, bore the cost. ### Why has this become politically difficult for the White House? (cnbc.com) Donald Trump said companies seeking refunds would get money back because of what he called a “terrible decision,” the Los Angeles Times reported. The paper also said he complained that refunds would return money to people who “hate our country.” Those comments put the White House in conflict with importers trying to recover duties that the Supreme Court said were never lawfully imposed. (latimes.com) Fortune contributors Jeffrey Sonnenfeld and Steven Tian argued on May 26 that the ruling gave Trump an “exit ramp” from a trade policy that had become harder to sustain legally and economically. That assessment was published as commentary, not as a court finding, but it reflected a broader debate over whether the administration would seek alternative tariff authorities. (latimes.com) ### What happens next for refund claims? Customs and Border Protection has been accepting refund applications from importers and brokers, according to Stateline and CNBC. Law firms advising importers have said recovery may depend on timely protests, administrative filings and the posture of related litigation. May 26 disclosures and court filings are now the main places to watch for the next step. (finance.yahoo.com) Walmart, Cardinal Health, Home Depot, Target and other importers will have to show claims in company filings or public statements, while Customs and Border Protection and federal courts will determine how quickly the remaining refunds move. (latimes.com) (stateline.org)
Key numbers
- Supreme Court ruled on February 20, 2026 that the International Emergency Economic Powers Act did not authorize President Donald Trump’s tariffs.
- Bloomberg estimated the government owes about $166 billion in refunds, and Walmart told CNBC it plans to use any repayment for lower prices.
- Trump*, was decided 6-3, according to the court’s opinion.
- SCOTUSblog said the court held that the tariffs exceeded powers Congress had delegated to the president under the 1977 law.
What happens next
- (supremecourt.gov) Bloomberg reported on May 12 that more than $35.5 billion in tariff refunds had already been cleared for importers who successfully filed claims.
- (bakertilly.com) The Los Angeles Times reported on May 26 that companies including Cardinal Health and Walmart were among public firms pursuing refunds, while a Bloomberg analysis found only about 5% of the 3,000 largest publicly traded U.S.
- CNBC also reported that Home Depot and Target had applied for refunds.
Quick answers
What happened in Supreme Court orders tariff refunds?
The U.S. Supreme Court ruled on February 20, 2026 that the International Emergency Economic Powers Act did not authorize President Donald Trump’s tariffs. Bloomberg estimated the government owes about $166 billion in refunds, and Walmart told CNBC it plans to use any repayment for lower prices. Customs and Border Protection has been accepting refund applications, with importers and brokers pursuing claims through agency filings and related litigation.
Why does Supreme Court orders tariff refunds matter?
The U.S. Supreme Court ruled on February 20 that the International Emergency Economic Powers Act did not give President Donald Trump authority to impose sweeping tariffs, ending the legal basis for duties that had been collected on imports from countries including China, Canada and Mexico. The case, *Learning Resources, Inc. v. Trump*, was decided 6-3, according to the court’s opinion. The decision set off a new phase of the trade fight: companies that paid the duties are now seeking refunds through Customs and Border Protection and through court proceedings. President Trump called the ruling a “terrible decision,” according to the Los Angeles Times. What exactly did the court strike down? Chief Justice John Roberts wrote that IEEPA authorizes the president to “regulate” imports during a national emergency, but not to impose tariffs, according to the Supreme Court opinion and a Congressional Research Service legal summary. The ruling covered tariffs Trump had imposed by executive order after invoking emergency powers tied to drug trafficking and trade deficits. SCOTUSblog said the court held that the tariffs exceeded powers Congress had delegated to the president under the 1977 law. (supremecourt.gov) February 20 is the key date because the court’s ruling affirmed lower-court conclusions that the tariff program was unlawful. Trade advisers and law firms have since described the decision as opening a pathway for importers to recover duties already paid, subject to filing procedures and protest requirements. How much money is at stake for importers? Customs and Border Protection said in a court filing cited by CNBC that the government owes roughly $166 billion in refunds overall. (supremecourt.gov) Bloomberg reported on May 12 that more than $35.5 billion in tariff refunds had already been cleared for importers who successfully filed claims. Those figures have turned what began as a constitutional fight over presidential power into a large accounting issue for importers, customs brokers and the federal government. (bakertilly.com) The Los Angeles Times reported on May 26 that companies including Cardinal Health and Walmart were among public firms pursuing refunds, while a Bloomberg analysis found only about 5% of the 3,000 largest publicly traded U.S. companies had mentioned refunds in recent comments and filings. That leaves a limited but financially significant set of companies publicly disclosing exposure tied to the now-invalid duties. (cnbc.com) Which companies have said something publicly? Walmart confirmed to CNBC that it has sought a tariff refund and said it would use any money it receives to invest in lower prices for shoppers. CNBC also reported that Home Depot and Target had applied for refunds. Those statements gave public confirmation that large retailers were participating in the process after weeks of uncertainty over whether some companies would avoid claims for political reasons. (latimes.com) Cardinal Health was identified by the Los Angeles Times as one of the companies pursuing refunds. The same report said corporate disclosures had begun to show material financial exposure from the tariffs, undercutting Trump’s repeated argument that foreign exporters, rather than U.S. importers, bore the cost. Why has this become politically difficult for the White House? (cnbc.com) Donald Trump said companies seeking refunds would get money back because of what he called a “terrible decision,” the Los Angeles Times reported. The paper also said he complained that refunds would return money to people who “hate our country.” Those comments put the White House in conflict with importers trying to recover duties that the Supreme Court said were never lawfully imposed. (latimes.com) Fortune contributors Jeffrey Sonnenfeld and Steven Tian argued on May 26 that the ruling gave Trump an “exit ramp” from a trade policy that had become harder to sustain legally and economically. That assessment was published as commentary, not as a court finding, but it reflected a broader debate over whether the administration would seek alternative tariff authorities. (latimes.com) What happens next for refund claims? Customs and Border Protection has been accepting refund applications from importers and brokers, according to Stateline and CNBC. Law firms advising importers have said recovery may depend on timely protests, administrative filings and the posture of related litigation. May 26 disclosures and court filings are now the main places to watch for the next step. (finance.yahoo.com) Walmart, Cardinal Health, Home Depot, Target and other importers will have to show claims in company filings or public statements, while Customs and Border Protection and federal courts will determine how quickly the remaining refunds move. (latimes.com) (stateline.org)
