Supreme Court strikes down Trump tariffs but leaves $175B refund question unanswered

The U.S. Supreme Court struck down Trump-era tariffs on February 20, 2026, citing executive overreach. However, the court did not rule on refunding an estimated $142 billion to $175 billion collected from importers, creating significant uncertainty for businesses seeking reimbursement. The 6-3 decision upheld legislative taxation powers but left the refund mechanism unresolved. Over 1,000 companies, including Costco (COST) and Goodyear (GT), challenged the duties. Analysts estimate Costco could secure $1 billion. The Penn Wharton Budget Model projects $175 billion in potential refunds. Small business advocates warn that bureaucratic delays could severely impact firms lacking capital for prolonged litigation.