In a landmark decision, the U.S. Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), creating waves across American commerce. The ruling, issued on February 20, 2026, calls into question the legality of numerous global trade levies introduced by President Donald Trump, but leaves key questions about refunds unanswered. As businesses and consumers await further clarity, the situation remains in flux, raising concerns about future tariff policies and their economic impact.
The implications of the ruling are far-reaching, particularly for importers and businesses that may have overpaid under the invalidated tariffs. However, the question of whether consumers will see any direct financial relief remains unsettled. With new levies already being introduced, the ruling’s long-term effects on U.S. trade and prices are still unfolding.
Refunds for Tariffs Remain Uncertain
The Supreme Court’s decision has sparked confusion over whether refunds will be issued to businesses that paid tariffs under the IEEPA. The court’s ruling was clear in invalidating these duties, but it stopped short of addressing whether affected businesses can recover the money they paid. According to a spokesperson from U.S. Customs and Border Protection (CBP), the agency is ready to implement any new executive orders and is monitoring further legal developments.
Economists, including Justin Wolfers, note that consumers will not see refunds, as it is importers, not consumers, who directly pay tariffs. While consumers may have paid higher prices due to increased costs passed on by importers, it is the importers themselves who are entitled to any refunds if the duties are deemed unlawful.
Businesses that paid the levies will need to initiate the claims process, with possible recourse through CBP procedures like Post Summary Corrections or filing protests with the U.S. Court of International Trade (CIT). However, it is unclear how quickly refunds will be processed, given the legal complexities involved.
New Tariffs Continue Under Separate Legislation
Despite the invalidation of the IEEPA tariffs, other trade duties remain in place. President Trump’s administration has already introduced a temporary global tariff of 10 percent, with plans to raise it to 15 percent under the Trade Act of 1974. This new levy, authorized under Section 122 of the Trade Act, is set to last for up to 150 days. Legal experts, including Stratos Pahis, co-director of the Dennis J. Block Center for the Study of International Business Law, highlight that while the legal foundation for these new import fees may be challenged, they will remain in force for now.
Additionally, the administration is considering invoking other statutory provisions, such as Section 301 of the Trade Act of 1974, which allows for tariffs on countries that impose “unjustifiable” or “discriminatory” practices that affect U.S. commerce. These tariffs are also expected to face legal scrutiny, but they could complicate the landscape for businesses already reeling from tariff-related uncertainty.
As tariffs remain in place under different legal frameworks, it remains unclear how businesses will be affected. The complexity of navigating refund claims, coupled with the ongoing tariff impositions, may lead to delays and confusion for those attempting to recover funds. As Jennifer Hillman, co-director of the Center for Transnational Legal Studies at Georgetown University, notes, “the sheer magnitude of the number of refunds that will need to be issued means that delays in the process are likely.”
With the February 20 ruling halting the collection of IEEPA-based tariffs, the focus now shifts to how the refund process will unfold and whether new duties will bring further economic disruption. While the Supreme Court’s decision marks a significant shift in trade law, the path forward remains fraught with legal battles and economic challenges, with consumers likely feeling the effects in the form of sustained high prices.
