Full Breakdown
Supreme Court Overturns Trump’s IEEPA Tariffs, Initiates $85 Billion Refund Process
5/28/2026, 1:25:52 AM
Supreme Court Ruling Nullifies IEEPA Tariffs and Triggers Refund Process
On 20 February 2026 the Supreme Court ruled 6-3 that President Donald Trump exceeded authority under IEEPA when he imposed a 10 % tariff and higher duties on Chinese goods. The decision invalidated the “Liberation Day” regime and required the Treasury to return duties.
Policy Background
Trump used IEEPA in February 2025 to levy duties on imports from Canada, Mexico and China, then expanded the program in April 2025 with the “Liberation Day” order that imposed a 10 % tariff on goods. After the Court’s ruling, the administration moved to Section 122 of Trade Act, which authorizes a 10 % tariff that remains in effect.
Refunds and Figures
CBP reports $20.6 billion already refunded and $85 billion in potential refunds pending, $65 billion of which remain unpaid. $165 billion in IEEPA duties were collected before the ruling. 4,185 refunds await Treasury transfer due to missing banking details. Tax Foundation estimates the tariffs added $1,000 in 2025 and $700 in 2026.
Official Statements & Responses
CBP’s Brandon Lord confirmed the $85 billion figure and said missing bank information delays payments. The White House said businesses without account details will not receive refunds until they provide them. USTR Greer noted the statute does not specify when Section 122 can be reused, leaving the extension of the 10 % tariff uncertain. President Trump said he would “remember” companies that chose not to file for refunds.
Business and Consumer Reaction
National Retail Federation and the Chamber of Commerce urged refunds, saying they could help lower prices. Walmart said funds would be used to reduce prices for shoppers. Analysts warned refunds aid importers, not consumers, and cuts are unlikely.
Conflicting Data and Gaps
Guardian reports $133 billion in tariffs eligible for refund, while NBC News cites $165 billion collected under IEEPA. Timeline for the remaining $65 billion of refunds is unclear, and authority to renew Section 122 after its 150-day limit remains unsettled.
Verbatim Quotes
- “It seems there is no method to this and no statements of why, how and when they are paying,” — Jay Foreman, CEO, Basic Fun.
- “Approximately $85 billion in both potential and certified refunds have been accepted for processing” — Brandon Lord, Executive Director of Trade Programs, U.S. Customs and Border Protection.
- “When you look at that statute, it says they expire, but doesn’t say when you can redo it,” — Jamieson Greer, U.S. Trade Representative.
- “The decision to refund tariff funds to businesses undoubtedly provided some hope to millions of Americans struggling with inflationary pressures that a reversal in pricing could also be on the way,” — Alex Beene, Financial Literacy Instructor, University of Tennessee at Martin.
What's Next
CBP will continue refund processing, using the CAPE portal for entries from Jan 30 to Apr 19 2026. Lawmakers watch whether Congress will extend Section 122 after its 150-day period. Businesses await refunds, and consumer groups monitor downstream price adjustments.
