Supreme Court Strikes Down Trump Tariffs, $133B in Refunds

The Supreme Court just handed American businesses a major win by striking down President Trump's emergency tariffs in a decisive 6-3 ruling.

The court ruled that Trump couldn't use emergency powers to impose double-digit tariffs on almost every country in the world. The decision affects $133 billion already collected by the government, money that now needs to find its way back to the companies that paid it.

Two justices Trump appointed joined the majority in rejecting the tariffs. The court made clear that only Congress has the power to tax imports, not the president acting alone through emergency declarations.

Now comes the tricky part: getting refunds processed for thousands of companies. Trade lawyers say it could take 12 to 18 months to sort everything out, but the overwhelming legal victory means importers will likely see their money returned.

The U.S. Customs and Border Protection agency has a system for refunding duties when errors occur. Officials might expand that existing process to handle these tariff refunds, creating perhaps a special website where companies can file claims.

Smart companies already got in line. Costco, Revlon, and Bumble Bee Foods filed lawsuits claiming refunds even before the Supreme Court ruled, positioning themselves at the front of what could be a very long line.

The Ripple Effect

Beyond the direct refunds, this decision could ease inflation by removing pressure on prices. When tens of billions of dollars flow back to businesses over the next year and a half, that money could stimulate spending and economic growth.

The precedent matters too. Back in the 1990s, courts struck down an unconstitutional harbor fee and successfully set up a refund system for exporters. The scale is bigger this time, but the legal framework exists.

Trade lawyer Alexis Early put it simply: "Just because the process is difficult to administer doesn't mean the government has the right to hold on to fees that were collected unlawfully."

Some consumers paid higher prices when companies passed along tariff costs, but those indirect costs would be nearly impossible to trace and refund. The money will go back to the importers who paid the government directly.

The road ahead involves coordination between customs officials, the Court of International Trade, and likely many other courts working through individual claims.

American businesses just got confirmation that even emergency powers have limits, and $133 billion is heading back where it belongs.