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Will Trump tariff refunds be issued? Courts hold the key as US trade chief says 'they created the situation’

After the Supreme Court struck down Trump’s tariffs, over $130 billion in collected duties remains unresolved regarding refunds.

Published on: Feb 23, 2026, 14:03:34 IST
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Billions of dollars collected under President Donald Trump’s global tariffs may or may not be returned after the Supreme Court of the United States struck down the duties without explaining how refunds should be handled. Administration officials say lower courts will determine whether importers receive compensation and how any repayments would work.

US Trade Representative Jamieson Greer said the administration will follow judicial guidance. (AP)
US Trade Representative Jamieson Greer said the administration will follow judicial guidance. (AP)

More than $130 billion collected under the tariffs is potentially at stake. The duties, imposed using the International Emergency Economic Powers Act (IEEPA), were ruled unlawful, but the decision left repayment logistics unresolved.

Also Read: Indian-origin lawyer behind Supreme Court tariff setback for Trump. Who is Neal Katyal?

Courts to decide refund process

US Trade Representative Jamieson Greer said the administration will follow judicial guidance. “So it’s a matter for the courts,” he said on Fox News Sunday. “They created the situation, and we’ll follow whatever they say to do.”

Treasury Secretary Scott Bessent maintained that position, telling CNN the government will wait for direction and that a decision on refunds could take “weeks or months.”

Businesses and consumers could feel the impact

Major importers, including Costco, filed lawsuits ahead of the ruling to preserve potential refund claims. A New York Federal Reserve study found US consumers and businesses paid roughly 90% of the tariffs, contradicting claims that foreign exporters bore most of the burden.

Also Read: ‘I can destroy trade, but can’t charge $1’: Trump scoffs US Supreme Court's tariffs order

During earlier litigation, Justice Department lawyers acknowledged that refunds would be issued if the tariffs were found unlawful. Those assurances were also used to argue against suspending the duties while the case proceeded.

Legal and logistical hurdles ahead

Trade attorney Joyce Adetutu of Vinson & Elkins told the Associated Press the government could make reimbursement difficult, potentially forcing importers to seek relief through further court action.

Justice Brett Kavanaugh, one of three dissenters, warned the refund process could become a “mess,” noting the ruling did not explain how the government should return the money.

US Customs and Border Protection has procedures to refund duties in certain cases. However, the scale and complexity of the tariff collections may complicate any repayment effort.

For now, companies and consumers must wait for lower courts to decide whether refunds will be issued and how they would be distributed.

  • Prakriti Deb
    ABOUT THE AUTHOR
    Prakriti Deb

    Prakriti Deb is a journalist at Hindustan Times Digital, where she is part of the US Desk. She works on stories related to American politics, crime, sports, entertainment and weather. She particularly enjoys covering political developments that have global ripples. Through her work, she aims to break down complex events in a way that feels simple and understandable. Before joining the Hindustan Times, she worked with The Indian Express Digital, where she covered world affairs. She holds a postgraduate degree in Mass Communication with a specialisation in Journalism, along with a bachelor’s degree in English Literature. Outside the newsroom, Prakriti enjoys travelling and stepping out of her comfort zone. She finds her sense of being through storytelling in all its forms, including conversations, painting, theatre, dance and photography. She appreciates discussions that challenge her perspective and help her see the world a little differently.Read More

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