US President Donald Trump, flanked by Commerce Secretary Howard Lutnick, speaks during a press conference at the White House, following the Supreme Court’s ruling that Trump exceeded his authority when he imposed tariffs, in Washington, DC, US, February 20, 2026. | Photo credit: KEVIN LAMARQUE
The court did not say how the government should pay back the illegal tariffs, worth an estimated $175 billion. When asked about refunds, Trump said at a news conference that “we will be in court for the next five years.”
How are rates collected?
For almost all goods subject to tariffs, an importer posts a bond with the Customs and Border Protection Agency and pays an estimated tariff on the goods to bring them into the United States.
The government finally sets the rates for these goods, a process known as liquidation that usually takes place 314 days after the goods arrive. Overpayments will be refunded or the importer must make up the shortfall. Importers filed suit with the U.S. Court of International Trade to try to halt the process of determining final tariff payments while the Supreme Court was hearing the case, but that court denied the request.
Has the Supreme Court said how the money should be repaid?
No. In a dissenting opinion, Justice Brett Kavanaugh said the court’s ruling would likely have serious practical consequences in the short term, including refunds. He noted that during oral arguments it was recognized that distributing refunds was likely to be “a mess.”
The case now goes back to the Court of International Trade to settle the refunds.
How can refunds be handled?
Importers have filed more than a thousand lawsuits in commercial court seeking refunds, and a flood of new cases is likely to follow.
The court ruled in December that it had the power to reopen the final tariff determinations and order the government to pay refunds with interest — an authority the Trump administration said would not be challenged in court. That decision has removed potential legal complications with refunds, according to trade experts.
What should importers do to get a refund?
Each importer might have to sue at the Court of International Trade to get refunds, and it’s not clear whether a class action could be brought to cover the wide range of companies that have paid tariffs, legal experts say. Importers have two years under U.S. trade law to file a lawsuit to demand a refund.
The lawsuit could disproportionately hurt smaller businesses, many of which have already suffered more from the tariffs than well-financed companies like Costco. Lawyers for importers said some smaller importers may forego a possible refund rather than pay thousands of dollars in legal and court fees to file a case.
Is there a precedent for these refunds?
The Court of International Trade has overseen large-scale refunds before. Congress established a port maintenance tax in 1986, which was assessed based on the value of all cargo in and out of U.S. ports. The Supreme Court ruled in 1998 that part of the tax was unconstitutional. The Court of International Trade oversaw a reimbursement process involving more than 100,000 claimants and led by Judge Jane Restani, who remains a member of the court.
Does it have to be a mess?
Trade experts say the government has tracked tariff payments and improved record-keeping systems, which should make it easier to determine the size of refunds. Small businesses have called on the Trump administration to issue automatic refunds and have expressed concerns that the government would scrutinize the paperwork on entry in a way that slows the refund process.
Even if refunds are issued, some businesses that requested them may not get the money. That’s because the company may not have been the importer of record, which is the entity responsible for ensuring imported goods comply with regulations and paying import duties.
Once the refund is distributed, it will depend on the contractual arrangement between the company that paid the tariff and the known importer to determine who ultimately gets the money, creating another potential legal dispute.
The process could take years, trade groups warn.
For that reason, some companies with potential tariff refunds have sold their potential claim to Wall Street investors.
Published on February 21, 2026
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