$20.6 Billion in Tariff Refunds Paid, More on the Way

The Trump administration has refunded more than $20 billion in tariffs to importers and shippers, according to a court filing, after the Supreme Court struck down the cornerstone of President Donald Trump’s trade policy in February. With approximately $85 billion in total refunds accepted for processing, the effort represents the largest tariff refund in American history.

Context

The refunds stem from tariffs imposed under the International Emergency Economic Powers Act (IEEPA), a 1977 law designed to address national security emergencies. Starting in February 2025, the Trump administration used IEEPA to impose sweeping tariffs on imports from Canada, Mexico, China, and other countries, collecting roughly $166 billion from approximately 330,000 importers across 53 million import entries.

On February 20, 2026, the Supreme Court ruled in Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections that IEEPA did not confer authority to impose tariffs — a power the Constitution grants primarily to Congress. As Thompson Coburn LLP noted in a legal alert, the ruling affirmed lower court decisions vacating the executive orders.

Key Developments

According to NBC News, U.S. Customs and Border Protection (CBP) Executive Director of Trade Programs Brandon Lord said in a court filing Tuesday that $20.6 billion in refunds had been “completed” as of May 22, 2026, out of approximately $85 billion in “potential and certified refunds” accepted for processing.

However, Lord noted that 4,185 consolidated refunds have not been transmitted to the Treasury for processing because the importers had not provided their bank account information.

Hundreds of major companies have lined up to claim refunds, including Costco, Walmart, Home Depot, Target, General Motors, Ford, FedEx, UPS, DHL, Apple, and John Deere. CBP launched its Consolidated Administration and Processing of Entries (CAPE) refund portal on April 20, 2026, integrated into the existing Automated Commercial Environment (ACE) system, allowing importers to submit bulk refund claims.

As the American Action Forum reported, more than 11 million import entries had been accepted for refunds as of late April, with CBP processing claims faster than initially anticipated.

Analysis & Implications

President Trump has taken a contradictory stance on the refunds. While his administration processes refunds as required by law, he has publicly criticized companies seeking refunds, calling them people who “hate our country” and threatening to “remember” them. Despite this, major companies have moved with striking unanimity to pursue the money legally owed to them.

Jeffrey Sonnenfeld and Steven Tian of the Yale School of Management, writing in Fortune, described the Supreme Court ruling as handing Trump a “golden chariot” — an exit ramp from a trade war that was alienating allies, stoking inflation, and uniting the business community against him. They noted that the $166 billion in refunds represents a one-time windfall equivalent to roughly a quarter of S&P 500 quarterly earnings.

A key unresolved question is whether consumers — who ultimately paid higher prices due to tariffs — will benefit from refunds. Some members of Congress have proposed legislation directing refunds to consumers, but most companies have not committed to passing savings along. A wave of class-action pass-through lawsuits has been filed against importers who passed tariff costs on to customers, with legal theories including unjust enrichment and breach of contract.

What’s Next

Meanwhile, importers are still paying a 10% across-the-board tariff that Trump implemented under Section 122 of the Trade Act of 1974 immediately after the Supreme Court ruling. That tariff is set to expire on July 24, 2026. U.S. Trade Representative Jamieson Greer has suggested the administration may attempt to restart the 150-day clock without congressional approval, a legally contested position.

“When you look at that statute, it says they expire, but doesn’t say when you can redo it,” Greer said at the Council on Foreign Relations. “I can’t imagine that Congress would say, well, this is just, you know, once per term, right?”

As the refund process continues, importers face consequential decisions about pursuing reimbursements while managing potential downstream litigation exposure. The outcome of the Section 122 tariff debate and the pass-through lawsuits will shape the broader trade landscape for months to come.