US Businesses Clamor for Refunds After Supreme Court Strikes Down Trump's Tariffs
In a landmark decision on February 20, 2026, the US Supreme Court struck down Donald Trump's far-reaching global tariffs, declaring that the former president had exceeded his authority. The ruling has sparked immediate demands from top American business associations for refunds of the estimated $133 billion in tariffs collected under the now-invalidated policy.
Business Groups Call for Swift Economic Relief
The US National Retail Federation, representing retailers from Walmart to small brands, has called for a seamless process to refund tariffs to US importers. They argue that such refunds would serve as an economic boost, allowing companies to reinvest in operations, employees, and customers. Similarly, the US Chamber of Commerce emphasized the importance of swift refunds for over 200,000 small business importers, stating it would support stronger economic growth and lower costs for families.
Legal Uncertainty and Prolonged Litigation Ahead
However, the Supreme Court did not address the issue of refunds, leaving it to lower courts to sort out. This omission has set the stage for what many observers predict will be a messy and extended legal battle. At a news conference, Trump criticized the court for not discussing refunds, warning that the issue could drag on in courts for up to five years. US Treasury Secretary Scott Bessent echoed this sentiment, suggesting refunds might be delayed for weeks, months, or even years, with little immediate prospect for American businesses.
Impact on Small Businesses and Future Tariff Policies
Dan Anthony, director of the business coalition We Pay the Tariffs, highlighted the severe impact on small businesses, which have taken out loans, delayed hiring, and canceled expansion plans due to the tariffs. He predicted that refunds could help reverse these trends, but without a clear framework, relief remains uncertain. The American Apparel and Footwear Association has called on Customs and Border Protection to provide clear guidance on obtaining refunds, but Trump's intention to impose tariffs through other legal means complicates the situation.
Expert Analysis on Refund Processes and International Implications
Trade attorney Greg Husisian explained that the Court of International Trade will need to determine whether blanket relief can be issued to importers who paid tariffs under the International Emergency Economic Powers Act. He warned that refunds might only occur after further rounds of litigation, including potential appeals to higher courts. Additionally, the Trump administration is likely to avoid disrupting tariffs for countries with framework agreements, such as the UK and Japan, adding another layer of complexity to the refund process.
As businesses await clarity, the ruling underscores ongoing tensions in US trade policy and the economic challenges faced by importers navigating an uncertain legal landscape.
