Supreme Court invalidates Trump tariffs; companies face legal battle for $175B in refunds

The U.S. Supreme Court struck down President Trump’s blanket tariffs on February 20, 2026, but did not mandate refunds, leaving companies facing potential litigation to recover funds. The ruling upheld a 2025 decision by the Court of International Trade, yet President Trump indicated he would not issue automatic repayments, estimating a two-year legal fight. The Penn Wharton Budget Model projects up to $175 billion in refunds at stake. Trump simultaneously announced a new 10% global tariff under Section 122. Over 1,500 companies, including Costco (COST), have preemptively sued to secure their rights to refunds, as the process remains uncertain without executive cooperation.