Supreme Court Voids Trump Tariffs, Leaving $133 Billion in Refunds in Limbo

The U.S. Supreme Court struck down President Donald Trump's sweeping tariffs on February 20, 2026, ruling 6-3 that the 1977 International Emergency Economic Powers Act did not grant the president authority to impose import taxes. The decision leaves $133 billion in already-collected duties in legal limbo, with the refund process expected to take 12 to 18 months. The justices declined to specify how the government should return the unlawfully collected funds, leaving the matter to U.S. Customs and Border Protection, the Court of International Trade, and lower courts. Trade lawyers anticipate a chaotic process, with importers rather than consumers likely to receive refunds. Companies including Costco, Revlon, and Bumble Bee Foods have already filed lawsuits seeking repayments. The ruling invalidates the first major piece of Trump's second-term agenda, though the administration may attempt to replace the levies using alternative legal authorities.