Supreme Court opens tariff refund claims

Published May 27, 2026 by The Daily Scout

- The Supreme Court’s February 20, 2026 ruling against Trump’s IEEPA tariffs has opened a new contest over refunds for import duties already paid. (supremecourt.gov) - Cardinal Health told investors that most of its tariff payments fall into Phase 2 or later of the refund process, underscoring how large and slow these claims may be. (sec.gov) - The next fight is in the refund system: Customs has begun Phase 1 processing, while later claims and related litigation continue. (kpmg.com)

Why it matters

The Supreme Court’s February 20, 2026 decision in *Learning Resources v. Trump* answered one legal question and opened several financial ones. The court ruled 6-3 that the International Emergency Economic Powers Act does not authorize a president to impose tariffs, striking down duties Donald Trump had placed on imports from China, Canada, Mexico and most other trading partners. (supremecourt.gov) The justices did not decide how importers should be repaid for tariffs already collected. (sec.gov) That gap has pushed the dispute into corporate filings, customs procedures and new lawsuits. Companies that paid the duties are now trying to recover them, while consumer plaintiffs and trade lawyers are testing whether businesses that passed tariff costs along in prices should be allowed to keep the refunds. (kpmg.com) ### What exactly did the Supreme Court strike down? Chief Justice John Roberts wrote that IEEPA contains no tariff authority, according to the court’s opinion and a Congressional Research Service summary. The ruling invalidated two sets of Trump tariffs: drug-trafficking tariffs on imports from Canada, Mexico and China, and broader “reciprocal” tariffs tied to trade deficits. (supremecourt.gov) The February 20 ruling did not disturb other tariff laws. CRS said Congress has separately authorized tariffs in other statutes, including Section 232 of the Trade Expansion Act and Section 301 of the Trade Act of 1974. (scotusblog.com) ### Why are refunds now the center of the story? SCOTUSblog reported that the court left unresolved whether and how the government should refund importers that paid the tariffs, which it said were estimated in 2025 at more than $200 billion. Justice Brett Kavanaugh, in dissent, wrote that the government “may be required to refund billions of dollars to importers” even if some had already passed costs to consumers or others. (supremecourt.gov) KPMG said that on March 4, 2026, the Court of International Trade ordered the Trump administration to begin refunding all tariffs imposed under IEEPA. KPMG also said the administration was working on a refund mechanism while preserving its right to appeal issues including universal refunds, interest and whether already liquidated entries can be reopened. (congress.gov) ### Which companies have signaled they are pursuing money back? Cardinal Health disclosed in its April 30, 2026 quarterly filing that Customs and Border Protection had launched a Phase 1 refund program in April, but that “substantially all” of the company’s IEEPA tariffs paid would fall under Phase 2 or later phases. (scotusblog.com) That language indicated the company expects a material share of any recovery to come later in the process. Walmart has also become part of the refund fight, though the clearest public detail now comes from litigation rather than a company statement. A federal consumer class action filed on April 27 in Ohio alleges Walmart passed IEEPA tariff costs through higher prices and could keep about $10.2 billion in refunds after the Supreme Court ruling. (kpmg.com) The case remains at an early stage, with no class certified and no settlement. ### Why are shoppers and companies fighting over the same dollars? The consumer suits rest on a simple claim: if retailers raised prices to cover tariffs, then a full government refund could amount to a second recovery. (sec.gov) The National Law Review, summarizing one such case, said plaintiffs alleged a company passed about $240 million in IEEPA tariff costs to consumers while also seeking a full refund from the government. Importers and trade lawyers, by contrast, are focused on customs law and entry records. Skadden said Customs is building an automated system to process refunds after the Court of International Trade ordered roughly $165 billion in unlawfully collected IEEPA duties returned. (openclassactions.com) ### What happens next in the refund process? U.S. Customs and Border Protection began Phase 1 processing in April 2026, according to Cardinal Health’s filing and KPMG’s summary of the refund mechanism. Later phases are expected to cover a large share of claims, including many from major importers. (natlawreview.com) The next concrete milestones are in the courts and at Customs. The administration has not waived appeals over the scope of refunds, KPMG said, and companies including Cardinal Health have already told investors that much of their money, if recovered, will depend on Phase 2 or later processing. (kpmg.com) (sec.gov) (skadden.com)

Key numbers

The Supreme Court’s February 20, 2026 ruling against Trump’s IEEPA tariffs has opened a new contest over refunds for import duties already paid.
(supremecourt.gov) Cardinal Health told investors that most of its tariff payments fall into Phase 2 or later of the refund process, underscoring how large and slow these claims may be.
(sec.gov) The next fight is in the refund system: Customs has begun Phase 1 processing, while later claims and related litigation continue.
(kpmg.com) The Supreme Court’s February 20, 2026 decision in *Learning Resources v.

What happens next

Justice Brett Kavanaugh, in dissent, wrote that the government “may be required to refund billions of dollars to importers” even if some had already passed costs to consumers or others.
(supremecourt.gov) KPMG said that on March 4, 2026, the Court of International Trade ordered the Trump administration to begin refunding all tariffs imposed under IEEPA.
(scotusblog.com) That language indicated the company expects a material share of any recovery to come later in the process.

Sources

Quick answers

What happened in Supreme Court opens tariff refund claims?

The Supreme Court’s February 20, 2026 ruling against Trump’s IEEPA tariffs has opened a new contest over refunds for import duties already paid. (supremecourt.gov) Cardinal Health told investors that most of its tariff payments fall into Phase 2 or later of the refund process, underscoring how large and slow these claims may be. (sec.gov) The next fight is in the refund system: Customs has begun Phase 1 processing, while later claims and related litigation continue. (kpmg.com)

Why does Supreme Court opens tariff refund claims matter?

The Supreme Court’s February 20, 2026 decision in *Learning Resources v. Trump* answered one legal question and opened several financial ones. The court ruled 6-3 that the International Emergency Economic Powers Act does not authorize a president to impose tariffs, striking down duties Donald Trump had placed on imports from China, Canada, Mexico and most other trading partners. (supremecourt.gov) The justices did not decide how importers should be repaid for tariffs already collected. (sec.gov) That gap has pushed the dispute into corporate filings, customs procedures and new lawsuits. Companies that paid the duties are now trying to recover them, while consumer plaintiffs and trade lawyers are testing whether businesses that passed tariff costs along in prices should be allowed to keep the refunds. (kpmg.com) What exactly did the Supreme Court strike down? Chief Justice John Roberts wrote that IEEPA contains no tariff authority, according to the court’s opinion and a Congressional Research Service summary. The ruling invalidated two sets of Trump tariffs: drug-trafficking tariffs on imports from Canada, Mexico and China, and broader “reciprocal” tariffs tied to trade deficits. (supremecourt.gov) The February 20 ruling did not disturb other tariff laws. CRS said Congress has separately authorized tariffs in other statutes, including Section 232 of the Trade Expansion Act and Section 301 of the Trade Act of 1974. (scotusblog.com) Why are refunds now the center of the story? SCOTUSblog reported that the court left unresolved whether and how the government should refund importers that paid the tariffs, which it said were estimated in 2025 at more than $200 billion. Justice Brett Kavanaugh, in dissent, wrote that the government “may be required to refund billions of dollars to importers” even if some had already passed costs to consumers or others. (supremecourt.gov) KPMG said that on March 4, 2026, the Court of International Trade ordered the Trump administration to begin refunding all tariffs imposed under IEEPA. KPMG also said the administration was working on a refund mechanism while preserving its right to appeal issues including universal refunds, interest and whether already liquidated entries can be reopened. (congress.gov) Which companies have signaled they are pursuing money back? Cardinal Health disclosed in its April 30, 2026 quarterly filing that Customs and Border Protection had launched a Phase 1 refund program in April, but that “substantially all” of the company’s IEEPA tariffs paid would fall under Phase 2 or later phases. (scotusblog.com) That language indicated the company expects a material share of any recovery to come later in the process. Walmart has also become part of the refund fight, though the clearest public detail now comes from litigation rather than a company statement. A federal consumer class action filed on April 27 in Ohio alleges Walmart passed IEEPA tariff costs through higher prices and could keep about $10.2 billion in refunds after the Supreme Court ruling. (kpmg.com) The case remains at an early stage, with no class certified and no settlement. Why are shoppers and companies fighting over the same dollars? The consumer suits rest on a simple claim: if retailers raised prices to cover tariffs, then a full government refund could amount to a second recovery. (sec.gov) The National Law Review, summarizing one such case, said plaintiffs alleged a company passed about $240 million in IEEPA tariff costs to consumers while also seeking a full refund from the government. Importers and trade lawyers, by contrast, are focused on customs law and entry records. Skadden said Customs is building an automated system to process refunds after the Court of International Trade ordered roughly $165 billion in unlawfully collected IEEPA duties returned. (openclassactions.com) What happens next in the refund process? U.S. Customs and Border Protection began Phase 1 processing in April 2026, according to Cardinal Health’s filing and KPMG’s summary of the refund mechanism. Later phases are expected to cover a large share of claims, including many from major importers. (natlawreview.com) The next concrete milestones are in the courts and at Customs. The administration has not waived appeals over the scope of refunds, KPMG said, and companies including Cardinal Health have already told investors that much of their money, if recovered, will depend on Phase 2 or later processing. (kpmg.com) (sec.gov) (skadden.com)