Supreme Court voids Trump emergency tariffs, opening door to about $175 billion in refunds
Feb 22nd 2026
Justices ruled 6-3 that President Trump exceeded IEEPA authority, remanding the case to the Court of International Trade and prompting estimates that more than $175 billion in tariff revenue could be reclaimed.
- The Supreme Court held 6-3 that Trump exceeded his authority by using the International Emergency Economic Powers Act to impose tariffs and sent the case back to the Court of International Trade.
- Penn-Wharton Budget Model estimates about $179 billion in IEEPA-related tariff receipts since February 2025 and calculates roughly $500 million in such collections per day, yielding a refund exposure near $175 billion.
- U.S. Customs and Border Protection last reported $133.5 billion as at-risk IEEPA assessments on December 14, though net collections are often lower after adjustments and partial refunds.
- Economists expect many importers to file refund claims, which would be paid from the U.S. Treasury and could exceed the combined fiscal 2025 budgets of the Departments of Transportation and Justice.
- Treasury Secretary Scott Bessent said the Treasury can cover required refunds and had planned large cash reserves, roughly $850 billion at the end of March and $900 billion at the end of June.
- President Trump moved to replace the invalidated IEEPA tariffs with a temporary 10 percent global import duty for 150 days and opened trade investigations under other statutes to maintain pressure on trading partners.
- The Congressional Budget Office previously estimated tariffs from Trump would generate about $300 billion annually over the coming decade, a figure the administration frequently cited.