The Supreme Court’s decision to strike down many of President Trump’s tariffs has set off a massive scramble, with companies racing to get billions of dollars back. But there is a big catch: the path to these refunds is very unclear, and consumers are angry.
The court’s opinion did not offer any clear steps on how these refunds would actually happen. Justice Brett Kavanaugh noted this lack of clarity in his dissenting opinion, writing that the court said “nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers.” He even acknowledged that the process is likely to be a “mess.”
According to NBC News, the amount of money involved is enormous. According to December data from U.S. Customs and Border Protection, about $130 billion has been collected from tariffs implemented under the International Economic Emergency Powers Act. Some estimates, including one from the University of Pennsylvania, suggest that total could now be more than $175 billion.
The refund battle is shaping up to favour big corporations over ordinary consumers
Hundreds of companies, including major players like Costco, have already filed lawsuits to get their money back. But economists point out that the process for companies to get refunds on duties paid is far from clear.
Meanwhile, an analysis from the Federal Reserve Bank of New York found that almost 90% of the “economic burden” of these tariffs actually fell on consumers and other businesses. Shoppers hoping for quick price relief may want to read about how long consumers could wait for prices to drop.
Senator Elizabeth Warren stated that there is no “legal mechanism for consumers and many small businesses to recoup the money they have already paid.” She added that “giant corporations with their armies of lawyers and lobbyists can sue for tariff refunds, then just pocket the money for themselves.”
Illinois Governor JB Pritzker sent a letter to President Trump demanding a refund of $1,700 “for every family in Illinois,” which he said would total more than $8 billion for his state. California Governor Gavin Newsom, who had previously sued over the tariffs, stated that “every dollar unlawfully taken must be refunded immediately, with interest.”
President Trump called the court’s decision “defective” during a White House news conference. When asked about refunds, he pointed back at the court, saying “they take months and months to write an opinion and they don’t even discuss that point.” He predicted the issue would likely be “litigated for the next two years,” and possibly even “five years” if companies push for refunds.
Some are pushing for a clearer path forward. A group of small businesses called We Pay the Tariffs called for “full, fast and automatic refunds.” Representatives Steven Horsford of Nevada and Janelle Bynum of Oregon introduced a bill that would require Customs and Border Protection to “automatically refund tariffs and customs duties collected under IEEPA since January 1, 2025.”
Treasury Secretary Scott Bessent said earlier that refunding the money “won’t be a problem” if the court ruled against the tariffs. But it raised concerns it could become a “corporate boondoggle,” questioning whether companies like Costco would actually return the money to their customers.
He also noted refunds could take anywhere from weeks to over a year to process. Adding to the uncertainty, Trump’s surprise move targeting every country with new tariffs after the ruling has made the overall trade situation even more complicated.
Published: Feb 21, 2026 01:15 pm