Story perspectives

Supreme Court Blocks Trump Tariffs, Triggers $166 B Refunds

5/1/2026

Summary

Supreme Court Halts

The U.S. Supreme Court ruled 6-3 that President Donald Trump’s tariff use of the International Emergency Economic Powers Act was unlawful.
The ruling creates $166 billion in refunds for about 330,000 importers.
Customs and Border Protection opened an online refund portal on April 20, 2026.
UPS, which collected $5 billion, will pass refunds to its customers.
FedEx will return refunds to shippers, with most payments expected within 60-90 days after approval.

Summary

Eaton Orders Update

Judge Richard Eaton ordered the government to file a status update on the customs refund process by May 12.
He reported 21 percent accepted, 3 percent liquidated and 1.74 million in refund stage as of April 26.
The CAPE portal, live last week, lets importers upload data despite long waits and password-reset glitches.
President Donald Trump called the February 20 Supreme Court ruling “terrible” and announced a fresh 10 percent global tariff.

History

Historical Context

After the WTO’s 2003 ruling that U.S. steel safeguard tariffs breached trade commitments—triggering over $2 billion in authorized sanctions, the Clinton administration later withdrew similar duties, and the EU’s threatened retaliatory measures heightened trade tensions. The Supreme Court’s 2024 invalidation of President Trump’s emergency steel tariff echoes that precedent, reinforcing judicial limits on presidential trade actions.

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Supreme Court Halts

The U.S. Supreme Court ruled 6-3 that President Donald Trump’s tariff use of the International Emergency Economic Powers Act was unlawful.
The ruling creates $166 billion in refunds for about 330,000 importers.
Customs and Border Protection opened an online refund portal on April 20, 2026.
UPS, which collected $5 billion, will pass refunds to its customers.
FedEx will return refunds to shippers, with most payments expected within 60-90 days after approval.

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