The $170Bn question: US SC junks Trump tariffs, but who will get the refunds?
Times of India
by TOI BUSINESS DESKFebruary 21, 2026
AI-Generated Deep Dive Summary
The US Supreme Court has invalidated President Trump's tariffs, leaving uncertainty for businesses and countries about how refunds will be processed. While the Trump administration has promised refunds for the $170 billion in tariffs collected, no clear plan has been established. The court acknowledged the complexity of refunding billions to importers but did not provide guidance on the process. Importers may now need to file individual lawsuits, which could take years and strain resources.
The case highlights a potential "mess" for the US Treasury, as refunds would require meticulous record-keeping and administrative work. Trade attorney Ted Posner noted that companies are left in limbo, unsure of when or how they will receive refunds. The process could take up to a year, with no guarantee of efficiency. This situation is reminiscent of past rulings, such as the 1998 decision that resulted in $730 million in refunds over two years.
The Supreme Court's ruling marks a significant setback for Trump's economic agenda, particularly his trade policies. The majority decision argued that Congress, not the president, holds the constitutional authority to impose tariffs. Despite the loss, Trump defiantly announced additional 10% global tariffs on imports and criticized the justices as "fools" for their decision.
The ruling has broader implications for international trade relations. While the administration continues to defy the court's findings, countries like India may see a reset in trade negotiations with the US. However, without clarity on refunds or future policy, global businesses remain uncertain about their financial obligations and opportunities in the US market.
This situation underscores the challenges of reconciling executive actions with constitutional limits. As the process for refunds moves to the Court of International Trade, businesses and countries await further
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Originally published on Times of India on 2/21/2026