The Supreme Court’s bombshell tariff ruling failed to answer a $133 billion question over refunds: Here’s what happens now

Fortune

by Jeff John Roberts

February 20, 2026

AI-Generated Deep Dive Summary

The Supreme Court ruled that President Donald Trump lacked the authority to impose emergency tariffs using his executive powers, dealing a significant blow to the White House’s trade policies. In a 6-3 decision, the court declared the tariffs illegal but notably avoided addressing the crucial question of whether companies would receive refunds for the $133 billion paid under this policy. This silence has left businesses in limbo, as they now face months of uncertainty before knowing if and when they will get their money back. Trade lawyers explain that the refund issue was raised during oral arguments and lower court proceedings but ultimately went unanswered by the Supreme Court. The case will now return to the Court of International Trade, where the outcome remains uncertain. Government attorneys initially indicated willingness to approve refunds, but administration officials have hinted at resistance due to the potential financial impact on the Treasury. The process for tariffs is complex, involving preliminary payments based on fluctuating import duties and guidelines. Companies often face uncertainty in calculating exact amounts owed, especially given Trump’s shifting tariff rates. Costco, which filed an early lawsuit to preserve its refund rights, may have a strategic advantage if refunds are ultimately approved. While the Supreme Court’s decision clarifies that emergency tariffs exceed presidential authority, the lack of clarity on refunds leaves businesses waiting for resolution. The delay could stretch into months or longer as legal battles over repayment and compliance continue. For companies navigating this uncertain landscape, the outcome will have significant financial implications, particularly in terms of cash flow and legal costs. This situation underscores the importance of proactive legal strategies for businesses dealing with government policies that impact their operations and finances. As the refund issue unfolds, stakeholders will closely monitor developments that could reshape the business landscape and corporate planning.

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Originally published on Fortune on 2/20/2026