Supreme Court Declares IEEPA Tariffs Unconstitutional The high court issued a 6‑3 decision on Feb. 21, 2026, holding that the 1977 International Emergency Economic Powers Act does not grant the president authority to levy import taxes, thereby striking down the sweeping emergency tariffs imposed by former President Trump [5][6][8][9]. The ruling invalidated duties that had generated roughly $133 billion in additional federal revenue, with analysts estimating the total at about $130 billion [1][9]. The Court’s opinion, authored by Chief Justice John Roberts, also ordered that the tariffs cease after midnight EST on Tuesday, Feb. 24 [2][3].

Trump Announces New Global Tariff and Criticizes Justices President Trump responded by labeling the six dissenting justices “absolutely ashamed,” “disloyal to our Constitution,” and “lapdogs,” while pledging to impose a worldwide tariff of 15 %—up from the 10 % he mentioned immediately after the ruling [2][3][5][7]. Within hours he signed a proclamation invoking a different trade statute to apply a 10 % tariff for 150 days and hinted at further restrictions on “unfair” trading partners [5][7]. His statements framed the court loss as a temporary setback and signaled an intent to continue aggressive trade measures despite the decision [2][5].

Senate Democrats Introduce $175 Billion Refund Bill On Feb. 23, Senators Ron Wyden, Ed Markey and Jeanne Shaheen unveiled legislation requiring U.S. Customs and Border Protection to return roughly $175 billion in tariff collections, plus interest, within 180 days and to prioritize refunds for small‑business importers [2][3][4]. The bill also directs larger importers to pass recovered funds on to customers and mandates interest payments to mitigate financial harm [4]. Although Democrats present the proposal as a “crucial first step” before the November midterms, analysts note the measure faces slim odds of passage in the closely divided Senate [4].

FedEx Files Lawsuit Seeking Complete Refund FedEx lodged a complaint in the U.S. Court of International Trade on Feb. 24, naming U.S. Customs and Border Protection and its commissioner Rodney S. Scott as defendants and demanding a full refund of all duties paid under the invalidated IEEPA tariffs [1][2][3]. The company did not disclose the monetary amount sought but said the action protects its rights as importer of record [1]. FedEx’s filing joins earlier suits by Revlon, Alcoa, Bumble Bee and Costco, all aiming to secure priority in any future reimbursement process [1].

Justice Kavanaugh Warns Refund Process Could Spark Chaos In a dissent joined by Justices Thomas and Alito, Justice Brett Kavanaugh warned that returning the billions collected would create a “mess” for the Treasury and could destabilize existing trade agreements [8][9]. Treasury Secretary Scott Bessent later said the government has the funds but doubts that refunds will reach consumers, describing the effort as a “corporate boondoggle” [8][4]. Trade lawyers anticipate a protracted, 12‑ to 18‑month refund timeline involving multiple agencies, with individual importers required to sue separately in the Court of International Trade [6][8].