• The U.S. Supreme Court struck down IEEPA tariffs as of February 20, 2026, potentially unlocking refunds for over $129 billion in duties collected from more than 34 million import entries.
  • Hundreds of tariff refund lawsuits are pending in the U.S. Court of International Trade, with the court managing filings through a blanket stay issued by Chief Judge Mark A. Barnett on December 23, 2025.
  • Importers, including Fortune Global 500 firms like Costco (COST) and Toyota (TM), have filed protective suits to preserve refund rights, as the ruling limits executive tariff powers and could inject billions into the economy.

Efforts to resolve the massive backlog of tariff refund lawsuits have accelerated following the Supreme Court's decision to invalidate tariffs imposed under the International Emergency Economic Powers Act. The ruling, which came down on February 20, 2026, has set the stage for what could be one of the largest refund processes in U.S. trade history, affecting over 301,000 importers.

According to people familiar with the matter, the U.S. Court of International Trade is preparing to lift a blanket stay on new refund lawsuits that was implemented by Chief Judge Mark A. Barnett in late December 2025. This move aims to streamline the handling of hundreds of pending cases challenging tariffs that collected $129 billion by December 2025. "We're working through the logistics of managing this unprecedented volume," said a court official who requested anonymity due to the sensitivity of ongoing proceedings.

The Supreme Court's decision followed consolidated cases from April 2025 lawsuits by importers and states, rejecting the Trump administration's broad use of IEEPA for permanent tariffs on national security grounds. Lower courts, including the CIT in May 2025 and the Federal Circuit on appeal, had previously sided with challengers, calling it an overreach into Congress's taxing powers. Treasury Secretary Scott Bessent affirmed that refunds would follow if mandated, with the administration conceding in filings that refunds with interest would be available after an adverse decision.

Importers are now scrambling to secure their claims. For example, Costco and Toyota filed protective suits to preserve rights, particularly for unliquidated entries, amid concerns about tight deadlines. Under trade regulations, importers can seek refunds via CBP protests within 180 days of liquidation or through CIT suits up to 2 years from accrual. "Without timely action, companies risk losing out on significant refunds," noted a trade attorney involved in multiple cases, who added that the ruling has prompted a surge in automation for tariff tracking to support claims.

In the political sphere, the ruling signals a shift toward reduced U.S. unilateralism, potentially easing trade tensions with affected nations. Just a day before the decision, on February 19, 2026, Trump nominated a White House lawyer to the CIT, a move seen by some as an attempt to influence refund details. The long-term outlook includes possible administrative challenges, such as debates over credits versus cash refunds, and an enormous burden on U.S. Customs and Border Protection to process 34 million entries.

As the CIT moves to consolidate cases and direct CBP on refunds and reliquidation, experts advise importers to prepare documentation now. "This is a game-changer for businesses reliant on global trade," said an industry analyst, pointing to the potential economic boost from refunds easing cost pressures. The court's rulings in December 2025 confirmed its authority to order refunds regardless of entry liquidation status, setting a precedent for future unlawful duty cases.

Correction: An earlier version misstated the number of import entries; it is over 34 million, not 34,000.