Businesses have begun demanding refunds for billions of dollars in tariffs that the U.S. Supreme Court ruled were illegally imposed by President Donald Trump, but the legal fallout is escalating into a broader political fight. Over the weekend, Trump harshly criticized the Supreme Court’s decision and the conservative justices he appointed, while also warning that he would “remember” companies that chose not to seek refunds from the estimated $127 billion refund program.
Supreme Court decision lifts Trump’s tariffs
In a 6-3 decision on February 20, the Supreme Court ruled that Trump exceeded his authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA). The court found that the tariffs improperly bypassed Congress’ constitutional role in setting taxes after Trump declared the U.S. trade deficit a national emergency.
A judge at the U.S. Court of International Trade later ruled that companies subject to the tariffs were entitled to refunds.
Over the weekend, Trump lashed out at the decision in a series of posts on Truth Social, arguing that it would cost the government billions of dollars.
“Any money paid to the United States need not be repaid” — If this sentence had been added to the highly controversial Tariff decision by the Supreme Court, it would have saved America $159 Billion!” Trump wrote.
Trump also criticized the conservative justices he appointed, Neil Gorsuch and Amy Coney Barrett.
“I ‘Love’ Justice Neil Gorsuch! He is truly a smart and good man, but he voted against me and our Country on Tariffs, a destructive act. How do I reconcile that? It’s so bad and hurtful to our Country,” Trump said.
“Likewise, I’ve always loved and respected Amy Coney Barrett, but the same goes for her. They were appointed by me, and yet they did terrible damage to our country.”
Trump added, “Maybe Neil and Amy had a really bad day, but our Country can only handle so many decisions of this magnitude before it crashes and cracks!!!”
He also linked the tariff decision to the broader national debate over birthright citizenship, writing, “Sometimes decisions need to be allowed to use Good, Strong, Common Sense as a guide. A negative decision on Birthright Citizenship, in addition to the recent Supreme Court Tariff disaster, is not economically sustainable for the United States!”
Trump says he will ‘reveal’ companies that skip refunds
Trump also suggested during a CNBC interview that big companies may be avoiding refund requests out of concern about offending him politically.
“If they don’t do that (request a tariff refund), great,” Trump said. “Actually, if they don’t do this, they must know me very well. I am very honored by what you just said. If they don’t do this, I will remember them.”
The comments came after Trump was asked about major companies such as Amazon and Apple that have not publicly announced plans to issue refunds.
Some companies are already asking for refunds
Many companies have confirmed that they plan to claw back tariff payments despite the political attention surrounding the process.
Levi Strauss & Co. said it expects to recover about $80 million after taxes on imported denim and other goods are paid.
Gap Inc., which owns Banana Republic, Old Navy and Athleta. also plans to file a claim.
“We clearly saw that the tariff impact was material to our performance,” said Gap CFO Katrina O’Connell. “As a registered importer, we are certainly trying to gain clarity on whether we can accept a refund.”
Court records show more than 330,000 importers paid nearly $166 billion in tariffs on 53 million shipments.
But as of April 14, only 56,497 importers had completed their enrollment in CBP’s electronic payment system, making them eligible for refunds of approximately $127 billion, including interest, in the first wave.
Future phases are expected to cover additional claims and more complex reimbursement scenarios.
Importers must submit CAPE declarations via the ACE Secure Data Portal using CSV uploads that list all eligible shipment entries.
CBP will verify claims, remove tariff fees, and recalculate taxes before issuing refunds electronically via ACH payments.
The agency estimates that approved requests may take 60 to 90 days to process.
Smaller companies, which absorb tariff costs rather than passing them entirely on to customers, say the timing of refunds is important.
Brad Jackson, co-founder of After Action Cigars in Minnesota, said his company paid about $34,000 in tariffs last year.
“My main concern is turnaround time,” Jackson said. “A repayment process that takes several months to complete does not solve the cash flow problem it is supposed to solve.”
Consumers may not get much direct help
While businesses could recover billions of dollars, consumers who paid higher prices during the tariff period are unlikely to receive refunds directly from the government.
Households bear about 90% of the tariff burden through higher prices, said Jared Bernstein, former Chairman of the Biden-era Council of Economic Advisers.
“Maybe some will drop some of the prices relative to normal prices,” Bernstein wrote on Substack in April. “But no one should hold their breath.”
A February report from the Tax Foundation estimated that the tariffs amount to a tax increase of about $1,000 per household in 2025.
Delivery companies say they will refund customers
Some logistics companies that receive tariff payments directly from consumers say they plan to refund the refunded money.
FedEx said it plans to refund customers if it receives a tariff refund from CBP. UPS and DHL also stated that they would send refunds back to customers whenever possible.
What happens next?
The launch of the refund portal marks just the first phase of a refund process that could stretch for months as CBP juggles billions of dollars in claims and millions of shipments.
The additional phases will increase compliance and address about $2.9 billion in deposits that require manual processing, the agency said.
Meanwhile, lawsuits involving Costco, EssilorLuxotticam, Lululemon, Nike and other companies continue to play out in court as consumers seek additional compensation.
These lawsuits may provide grounds for consumers to seek refunds from other companies.
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7 states are cutting income taxes in 2026: How much can you save under new flat tax rules?
A sweeping wave of tax reform is hitting the United States as many states move to simplify tax laws and reduce the financial burden on residents. For the 2026 tax year, seven specific states are implementing significant reductions; Many of these involve moving to a flat tax system where a single rate applies to everyone regardless of income. Supporters of these changes argue that “flat taxes are easier to understand and plan for and could make some states more competitive.” These cuts could provide much-needed breathing room in household budgets as families look for ways to combat inflation and rising costs of living.
7 states are cutting income taxes in 2026: How much can you save under new flat tax rules?
Treasury increased the bond interest rate to 4.26%, the fixed part remained the same. What does it mean for savers?
The U.S. Treasury announced a new rate of 4.26% for Series I savings bonds, slightly above the previous 4.03%. But underneath the hump lies a slight pullback: The fixed-rate portion remained steady at 0.9%. While I bonds remain one of the safest options for conservative savers, this quiet shift could reduce long-term returns for investors hoping to lock in inflation-protected income.
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John Dealbreuin came to the United States from a third world country without knowing anyone and with only $1,000; Guided by an immigrant dream. He reached his retirement number in 12 years.
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