What happens to Trump’s tariffs now that the Supreme Court invalidated them?

Last month, the Supreme Court invalidated a set of tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA). The decision, authored by Chief Justice John Roberts, indicated that the IEEPA does not give the president power to impose sweeping tariffs under that act without the approval of Congress.

Almost immediately following the Supreme Court’s decision, President Trump enacted a temporary 10% “global tariff” under Section 122 of the Trade Act of 1974 – which can last for up to 150 days unless Congress approves an extension – to maintain certain trade barriers. This went into effect on February 24. Trump has since announced he will raise the global tariff to 15%, a decision met with a joint lawsuit from more than 20 states on March 5. Even so, Treasury Secretary Scott Bessent is confident the higher levy will move forward.

The aftermath of the court’s decision raises practical questions for businesses and consumers alike: Will tariffs still be collected? How will refunds be issued? And how long might the process take?

While the Supreme Court did not issue any specific guidance as to how (or if) the government will be required to return billions of dollars of tariffs to importers, the U.S. Court of International Trade (CIT) determined on March 4 that companies affected by the IEEPA tariffs are indeed owed refunds. Written by CIT Judge Richard Eaton, the ruling indicates that “All importers of record whose entries were subject to IEEPA duties are entitled to the benefit” of the Supreme Court’s February 20 decision regarding the unlawful tariffs.

The CIT decision is the first real guidance of its kind, although logistics and timelines remain unclear. Indeed, Justice Brett Kavanaugh – one of three Supreme Court justices who dissented on the invalidation of the IEEPA tariffs – said any sort of refund process is likely to be a “mess.” Importers and affected parties should verify current rules with U.S. Customs and Border Protection (CBP) and monitor agency updates closely.

What the Supreme Court invalidated – and what it didn’t

The high court’s decision focused on tariffs imposed under IEEPA authority, and the justices determined that the statutory framework did not authorize the scope of tariffs implemented by the president. The immediate effect of the decision is that those specific tariffs are no longer valid: CBP stopped collecting them at 12:01 a.m. Eastern time on Tuesday, February 24, 2026.

Other trade remedies remain in place, however. Tariffs imposed under separate statutes – such as Section 232 of the Trade Expansion Act of 1962 (on national security-related tariffs, including 50% on steel and aluminum imports) and Section 301 of the Trade Act of 1974 (on unfair trade practices, including levies on Chinese goods) – were not directly affected by the court’s ruling.

From an operational standpoint, CBP is updating tariff rates in its systems, and importers should see changes reflected in entry summaries.

Will refunds be issued to companies or consumers?

The CIT ruled on March 4 that companies affected by IEEPA tariffs are entitled to refunds, but exactly how that process will play out remains unclear. Reporting following the CIT’s ruling notes that the government may appeal the decision or attempt to delay issuance of refunds through CBP.

For companies, particularly importers of record, preserving refund eligibility could involve ensuring that entries were properly documented and that protests or administrative claims are filed within required timelines.

For consumers, the path may be less direct. Even if refunds are issued to importers, there is no automatic guarantee that those savings will be passed along in the form of lower prices. Price adjustments may depend on contracts, inventory levels and competitive conditions.

Given the uncertainty, businesses should consult customs professionals and verify current CBP guidance. Consumers should temper expectations about immediate price relief.

Tariffs are still in place

As mentioned, even though the Supreme Court invalidated tariffs under the IEEPA, other tariff authorities remain active. The Trump administration implemented temporary Section 122 authority as a measure to maintain a “global tariff,” and tariffs on aluminum and steel enacted under Section 232 continue. These measures typically affect industries such as automotive manufacturing and construction, where metal inputs play a significant role. Section 301 tariffs on Chinese goods also remain in place.

Consumers may still feel price effects in categories tied to globally sourced components, including electronics, vehicles and certain household goods. However, the duration of those effects will depend on supply chains, inventory turnover and whether alternative trade policies are eventually enacted.

How investors can navigate price effects

As far as investors are concerned, tariff changes can influence company earnings, sector performance and overall market sentiment. Consumer prices may adjust gradually as retailers work through existing inventories. Some goods categories could see quicker price changes if supply chains are tightly linked to affected imports. Trade policy shifts can also affect profit margins, particularly for companies with limited ability to pass higher costs on to customers. Businesses with diversified supply chains or greater pricing power may be better positioned to absorb short-term disruptions.

From a personal finance perspective, maintaining a diversified investment strategy can help manage exposure to sector-specific risks that arise from changes in trade policy.

The bottom line

The Supreme Court’s decision struck down a set of tariffs imposed by President Trump under the IEEPA, but it did not eliminate all existing tariffs. The Court of International Trade (CIT) has ruled that companies affected by IEEPA tariffs are due refunds for previously paid duties; however, the specifics of that process remain uncertain and will likely depend on ongoing agency guidance and legal developments.

Meanwhile, businesses and consumers could continue to experience elevated prices as companies work through existing inventory and alternative tariff authorities remain in effect. Investors may benefit from staying focused on long-term objectives and consulting a J.P. Morgan financial professional to seek guidance tailored to their unique situation.

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