Courts order ~$100B in tariff refunds after earlier tariffs struck down

The U.S. government has refunded about $100 billion in tariffs after courts struck down duties imposed under President Donald Trump’s emergency-powers tariff program, according to multiple reports on August 5. The refunds stem from a February 20 Supreme Court ruling that said the International Emergency Economic Powers Act, or IEEPA, does not authorize the president to impose tariffs. U.S. Customs and Border Protection then set up a claims system to process repayments to importers. The result has been a large reversal in cash flows for companies that had paid the duties and for a government that had already collected them. ### Which tariffs were struck down? The Supreme Court ruled on February 20, 2026, in consolidated cases including *Learning Resources, Inc. v. Trump* and *Trump v. V.O.S. Selections, Inc.*, that IEEPA did not give Trump authority to impose the challenged tariffs. Legal summaries of the decision say the ruling invalidated both the “reciprocal” tariffs first imposed in April 2025 and separate trafficking- and immigration-related tariffs tied to fentanyl. (cnbctv18.com) CNBC reported at the time that the court, in a 6-3 decision, said the law underpinning those duties “does not authorize the President to impose tariffs.” Reuters, as carried by U.S. News, likewise reported that the ruling struck down Trump’s sweeping tariffs pursued under a statute meant for national emergencies. ### How did the refunds get to roughly $100 billion? (usnews.com) CNBC TV18 reported on August 5 that the Trump administration had refunded about $100 billion after the Supreme Court struck down the tariffs. Earlier reporting from the same outlet said the broader refund pool was about $166 billion, while trade-law analyses citing Court of International Trade orders put the total at roughly $165 billion in unlawfully collected IEEPA duties. (cnbc.com) A February estimate prepared by the Penn Wharton Budget Model for Reuters put potential refunds at more than $175 billion, covering duties already collected from importers under the invalidated program. The gap between that estimate and the court-linked figures reflects that estimates and court-ordered processing totals were not identical. (cnbctv18.com) ### How are companies getting the money back? U.S. Customs and Border Protection said it launched CAPE — the Consolidated Administration and Processing of Entries system inside ACE — to handle valid IEEPA duty refund requests. CBP says the system is designed to process declarations for duties imposed under IEEPA “as authorized by court order or applicable law.” (cnbctv18.com) CBP’s fact sheet says validated refunds are issued pursuant to court order and that CAPE enables batch handling of IEEPA duty refunds. Trade advisers said in April that CBP expected refunds to be issued within 60 to 90 days after a claim was filed and accepted, though that timeline came from private law-firm summaries of CBP guidance rather than a published CBP deadline. (cbp.gov) ### Why did this become a live issue for importers and states now? April 20 was the key operational date because CBP opened the refund pathway then, after weeks of uncertainty following the Supreme Court ruling. Before that, companies were still trying to determine whether refunds would be automatic, require litigation, or move through a customs-administration process. (cbp.gov) FedEx was among the companies that sued for recovery after the ruling, according to CNBC TV18 reporting in February. Newsweek also reported on August 5 that the refunds were unfolding while states were separately suing over newer duties, linking the repayments to a broader fight over tariff policy and executive authority. (cnbctv18.com) ### What is still unresolved? The Court of International Trade remains central because its orders shaped how CBP had to build and report on the refund process. Trade-law summaries say Judge Richard Eaton issued a series of March and April orders on implementation, including deadlines for CBP status updates as the CAPE system was developed. (cnbctv18.com) CBP says importers can continue submitting IEEPA refund declarations through CAPE. The remaining benchmark is how much of the roughly $165 billion to $166 billion pool is ultimately repaid, with any remaining disputes likely to keep running through the customs process and the Court of International Trade. (cbp.gov) (chanvitanza.com)