The battle over Trump tariff refunds is next — and it will be messy
Business Insider
February 20, 2026
AI-Generated Deep Dive Summary
The Supreme Court has ruled that President Donald Trump's tariffs under the International Emergency Economic Powers Act (IEEPA) were illegally collected, marking a significant defeat for the former administration. The decision overturns billions in taxes imposed on American businesses, with refunds now becoming a complex and potentially lengthy process. Trump himself has predicted that resolving these refunds could take years, while Treasury Secretary Steven Mnuchin has suggested that many Americans may never see their money returned.
The refund process is expected to be chaotic, as thousands of companies have already filed lawsuits seeking reimbursement. These include both small businesses, like a wine importer and an educational toy retailer, as well as major corporations such as Toyota and Costco. The refunds will need to be handled by Customs and Border Protection (CBP), but the Trump administration has yet to establish a formal process for this. Without clear guidelines, the cases are likely to be litigated in the Court of International Trade, which may appoint an administrator or special master to manage the claims.
The complexity of the refund process is further compounded by the sheer number of claims and the fact that many importers have already passed the costs of tariffs onto consumers. Experts estimate that resolving these refunds could take up to two years. While individuals may attempt to seek refunds for personal purchases affected by the tariffs, this would likely be a cumbersome and costly endeavor due to legal fees. However, class-action lawsuits by enterprising litigators could make this more feasible in the future.
For businesses, particularly those directly impacted by the tariffs, obtaining refunds will require distinguishing between taxes imposed under IEEPA and other valid tariffs still on the books. The process is expected to be time-consuming and resource-intensive, with no clear timeline for resolution. This legal battle highlights the broader implications of trade policy decisions and their lasting economic effects on both businesses and consumers.
Ultimately, while the Supreme Court's ruling represents a significant victory for those challenging Trump's tariffs, the refund process promises to be a drawn-out and messy ordeal. For businesses, this means navigating a complex legal landscape as they seek reimbursement for billions in illegally collected taxes. The outcome of these efforts will have far-reaching consequences for American trade
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Originally published on Business Insider on 2/20/2026