Trump furious as Supreme Court forces $149B tariff refunds

President Donald Trump criticized the Supreme Court after a 6-3 February 2026 decision that found his use of the International Emergency Economic Powers Act exceeded presidential authority and requires roughly $149 billion in refunds for tariffs imposed in 2025. In a May 18 interview he said the ruling ‘really pisses me off’ and objected to returning funds to countries he said had taken advantage of the United States.

The justices concluded that IEEPA, a 1977 statute intended for national emergencies and targeted sanctions, did not authorize broad tariffs tied to trade deficits, drug flows and border security. The decision invalidated a large share of the duties the administration imposed beginning April 2, 2025, when a minimum 10% reciprocal tariff on almost all imports was announced, with higher rates for dozens of countries and the steepest levies aimed at China. Tariffs enacted under other laws, including Section 232 for steel and aluminum and Section 301 on Chinese goods, were not affected.

U.S. Customs and Border Protection opened the Consolidated Administration and Processing of Entries portal in April 2026 to let importers of record file claims. More than 330,000 importers are eligible to seek refunds covering millions of individual entries. CBP prioritized the most recent payments first; approved claims are expected to be processed in about 60 to 90 days. Refunds began issuing in May 2026.

Treasury faces a one-time cash outflow estimated between $149 billion and $166 billion to cover returned duties, plus interest and administrative costs. Interest on the outstanding refunds is accumulating at an estimated $650 million per month. More than $35 billion has been paid or scheduled so far. General Motors disclosed it expects roughly $500 million back as part of more than $3 billion in duties it says are eligible for return.

The refund obligation reverses much of the surge in customs collections seen in 2025, when gross receipts reached about $264 billion, up from roughly $79 billion in 2024. Markets reacted to the 2025 tariff announcements and the ensuing legal uncertainty, with declines in risk-sensitive assets as investors weighed the possibility of trade disruptions and higher inflation.

Refunds go to importers of record — primarily businesses and customs brokers — not to individual consumers. That has prompted pressure for voluntary pass-throughs to shoppers and spawned class-action lawsuits in some cases. Logistics firms including FedEx and UPS have said they intend to pass refunds along to customers. Tax advisers note that refund receipts in 2026 are generally treated as taxable income for recipients.

Trump said he will pursue alternative legal paths to reimpose tariffs lost to the court ruling and indicated he will take note of companies that do not seek refunds. The administration continues to collect duties under statutes not affected by the IEEPA decision, leaving tariff revenue above pre-2025 levels but below earlier administration projections.