Supreme Court’s 6-3 ruling on February 20, 2026, which struck down President Trump’s global tariffs, a massive legal battle has erupted over the estimated $133 billion to $160 billion in duties already collected by the U.S. government.
While the Court invalidated the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), it did not provide an automatic mechanism for repayment, leaving hundreds of thousands of businesses in a “procedural limbo.”
The Surge in Litigation
The U.S. Court of International Trade (CIT) is currently the epicenter of this financial tug-of-war.
- Nearly 2,000 Lawsuits: Even before the official ruling, approximately 2,000 protective lawsuits had been filed by companies—ranging from retail giants like Costco and Walmart to industrial firms like Goodyear and Toyota—to preserve their right to a refund.
- Class-Action Momentum: Trade associations, including the National Retail Federation (NRF) and the U.S. Chamber of Commerce, are now leading the charge for “fast and automatic” refunds, arguing that small businesses took out loans just to cover these “illegal” tax bills.
- The “Liquidated” Hurdle: A major legal hurdle is whether a company’s “entry” (shipment) has been liquidated (finalized by Customs).
- Liquidated Entries: Companies must file a formal protest within 180 days of liquidation.
- Unliquidated Entries: These may be easier to correct through administrative “Post-Summary Corrections” (PSCs) before they are finalized.
Major Companies Seeking Refunds
The list of plaintiffs includes a “who’s who” of global commerce, many of whom filed in late 2025 and early 2026:
| Company | Status of Claim |
| Dole Fresh Fruit | Filed Jan 2, 2026; seeking full refund and injunction. |
| J. Crew Group | Filed Jan 6, 2026; seeking protection for all IEEPA duties paid. |
| Goodyear Tire | Filed Dec 10, 2025; seeking right to refund and interest. |
| BorgWarner | Auto parts maker seeking to hold IEEPA tariffs unlawful. |
| GoPro | Seeking refunds on all imported camera equipment duties. |
| Walmart & Target | Represented by the NRF, pushing for a “seamless” industry-wide process. |
The Government’s “Stall” Strategy
Despite the ruling, the Trump administration has signaled that it will not return the money without a fight.
- The “Five-Year” Warning: President Trump called the lack of a refund framework in the SCOTUS ruling “crazy” but warned, “We’ll end up being in court for the next five years.”
- Treasury’s Stance: Treasury Secretary Scott Bessent suggested that the process could be “dragged out over weeks, months, or years,” hinting that the government may try to keep the revenue to offset other fiscal gaps.
- “Pass-Through” Defense: Justice Kavanaugh’s dissent noted that the government might argue against refunds because many companies already passed the tariff costs on to consumers, meaning a refund would be a “windfall” for the corporations.
What Importers Should Do Now
Legal experts are advising companies to act immediately to avoid waiving their rights:
- Identify “9903.01” and “9903.02” Codes: These are the specific HTS codes used for the now-illegal IEEPA and Reciprocal tariffs.
- Monitor Protest Deadlines: The 180-day window is strict; missing it for a liquidated entry typically means the money is lost forever.
- Audit Workpapers: Ensure all CBP Form 7501 filings are reconciled and ready for high-scrutiny administrative review.
“The Supreme Court may have ruled the tariffs illegal, but the check isn’t in the mail yet. This is shifting from a constitutional battle to a massive administrative audit.” — Trade Counsel Analysis, Feb 21, 2026.
