Trump Administration Faces Pressure for Tariff Refunds Following Supreme Court Ruling

On February 20, 2026, the United States Supreme Court ruled against President Donald Trump's use of emergency powers to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). The court's 6-3 decision determined that the executive branch lacked the constitutional authority to levy such tariffs, reaffirming that the power to impose taxes and tariffs resides with Congress. This ruling has significant implications for the estimated $100 billion collected from U.S. businesses and consumers through these tariffs since their implementation.

New York Times

In response to the Supreme Court's ruling, Maryland's fiscal leaders—Governor Wes Moore, Comptroller Brooke E. Lierman, and Treasurer Dereck E. Davis—have formally demanded reimbursement from President Trump for the illegal tariffs imposed on Maryland residents. They estimate that Maryland businesses and consumers incurred approximately $4 billion in costs due to these tariffs, translating to about $1,744 per household. The officials argue that the Trump administration should issue refunds to ensure equitable distribution of the funds back to Maryland families and businesses. Governor Moore emphasized the need for the administration to rectify the financial burden placed on Marylanders, stating, “This isn’t just about bad policy; this is about the Supreme Court making it clear that these unilateral actions are illegal.”

Maryland Leader’s Demand Reimbursement from President Trump for Illegal Tariffs – WCBC Radio‘Pay Marylanders back’: Maryland leaders demanding reimbursement for President Trump’s illegal tariffsFedEx Moves to Recoup Tariffs, Says Shippers Would Get Money BackNew York TimesNew York Times

Several large companies, including FedEx and Costco, have initiated lawsuits seeking refunds for the tariffs they paid. FedEx has filed a suit against the federal government, asserting that it will issue refunds to shippers and consumers if the court orders the Trump administration to repay the collected tariffs. The logistics giant's legal action is part of a broader wave of lawsuits from over 2,000 companies aiming to recoup costs from the tariffs deemed unlawful by the Supreme Court.

FedEx Moves to Recoup Tariffs, Says Shippers Would Get Money BackNew York TimesMaryland Leader’s Demand Reimbursement from President Trump for Illegal Tariffs – WCBC Radio‘Pay Marylanders back’: Maryland leaders demanding reimbursement for President Trump’s illegal tariffsNew York Times

President Trump has expressed his opposition to refunding the collected tariffs, suggesting that he may seek a rehearing from the Supreme Court, although such requests are rare and unlikely to succeed. He has indicated that the process to resolve the tariff situation could take up to five years. Meanwhile, Treasury Secretary Scott Bessent has faced criticism from lawmakers, including Senate Minority Leader Chuck Schumer, who have demanded immediate action on tariff refunds, arguing that the funds rightfully belong to the businesses and consumers affected by the tariffs.

New York Times

As the Trump administration explores alternative legal avenues to impose new tariffs, experts warn that these actions may face further legal challenges. The administration's attempts to recreate tariffs using different legal provisions could lead to additional lawsuits from critics who argue that these measures also exceed presidential authority.

New York Times

The fallout from the Supreme Court's ruling on Trump's tariffs has ignited a complex legal and financial landscape, with state officials and corporations pushing for reimbursement of funds collected under the now-invalidated tariffs. As the situation unfolds, the administration's next steps and the potential for further legal battles remain uncertain.

New York Times