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Supreme Court Trump tariffs ruling could put U.S. on hook for $175 billion in refunds, estimate says

The Supreme Court invalidated tariffs imposed under the 1977 emergency law, raising potential refund claims exceeding $175 billion, as Congress holds sole tariff authority.

  • On Feb. 20, 2026, the U.S. Supreme Court issued a 6-3 opinion led by Chief Justice John Roberts that invalidated President Donald Trump's tariff authority under the International Emergency Economic Powers Act of 1977 .
  • Legal actors treated the case as a novel test of presidential emergency trade authority, with Trump proposing a temporary 10% global tariff under Section 122 powers, prompting litigation.
  • Trump attacked justices who voted against him and praised Brett Kavanaugh, Clarence Thomas, and Samuel Alito, with CNN's Kristen Holmes saying `He is clearly angry.'
  • He learned the ruling while meeting governors and immediately signaled a backup plan, while Congress faces a 150-day window to extend any implemented tariff.
  • A reporter asked whether dissenting justices will attend the State of the Union on Tuesday, Feb. 24, amid the political stakes from the court's ruling, which Trump criticized.
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Senator Elizabeth Warren demands that the money generated by the fees cancelled by the Supreme Court be reimbursed to U.S. consumers

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Impulsobaires broke the news in on Friday, February 20, 2026.
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