The U.S. Supreme Court ruled on February 20, 2026, that President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when imposing global tariffs, invalidating duties collected from over 330,000 importers.[3] Following this decision, the Court of International Trade ordered U.S. Customs and Border Protection (CBP) to refund the tariffs, and more than 2,000 lawsuits have been filed seeking approximately $166 billion in refunds plus accruing interest (estimated at $650 million monthly).[3][8] The Trump administration, however, appears to be attempting to delay the refund process, prompting businesses to pursue legal claims and explore alternative financing strategies.[3]
Key Players and Entities
Major companies involved include FedEx, Costco, L'Oréal, Dyson, and Nissan North America, which have filed refund claims or lawsuits in the Court of International Trade.[8] The lawsuit that reached the Supreme Court was Learning Resources, Inc. v. Trump.[2] Additionally, 24 states filed a lawsuit on March 5, 2026 challenging tariffs imposed under Section 122 authority.[2] CBP is developing the Consolidated Administration and Processing of Entries (CAPE) system to process refunds, though its full operational timeline remains unclear.[2] Trade attorneys and legal firms specializing in customs law are experiencing a surge in client inquiries, while financial services firms are stepping in to purchase or finance refund claims from importers.[5]
Timeline and Context
Trump announced tariffs on April 2, 2025, disrupting global supply chains.[5] The Supreme Court invalidated these tariffs in February 2026, but did not mandate a refund process or timeline.[3] The CIT subsequently ordered refunds in early March 2026. The administration faces pressure from trade organizations like the U.S. Chamber of Commerce, which urged quick repayment of over $130 billion in collected tariffs.[3] Importers have approximately 314 days after goods enter the U.S. to challenge duties; failure to act risks losing refund eligibility.[3]
Why It's Newsworthy
This remains active news because of ongoing uncertainty and potential litigation: the administration may appeal the CIT's refund order, refunds could take at least two years to resolve, and class action lawsuits are emerging claiming companies committed "double recovery" by raising prices on tariffed goods while now seeking government refunds.[5][6] The scale—potentially $166 billion—affects working capital and liquidity for thousands of businesses, making legal representation increasingly critical for importers navigating complex administrative requirements and tight deadlines.[1]