Trump administration faces new challenges over $130B in tariff refunds

The US government must pay back over $130 billion in tariffs after the Supreme Court struck down Trump's sweeping duties

Published on Mar. 12, 2026

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The Trump administration is facing further setbacks over the fate of the $175 billion in tariff revenue collected under the president's now-invalidated blanket tariffs. A federal judge has ruled that the US government must begin paying out more than $130 billion in tariff refunds to US businesses, and the customs agency says it will take 45 days to set up a system to process the refunds. Meanwhile, the administration is pursuing new avenues to impose tariffs, including launching investigations into the trade practices of over 60 countries.

Why it matters

The Supreme Court's decision to strike down Trump's sweeping tariffs has upended the administration's trade policy, forcing it to find new ways to impose duties while also grappling with the fallout of having to refund billions in tariff payments. This highlights the legal and political challenges the White House faces in pursuing its protectionist agenda, as well as the economic costs borne by businesses that paid the now-invalidated tariffs.

The details

After the Supreme Court ruled that Trump's blanket tariffs were illegal, a federal judge ordered the government to begin paying out over $130 billion in refunds to more than 2,000 companies that sued to recoup the tariff costs. The US Customs agency says it will take 45 days to set up an electronic system to process the refunds, but it won't be able to automatically issue the payments as the judge ordered. Meanwhile, the Trump administration has launched new trade investigations under different legal authorities in an effort to impose new tariffs on dozens of countries.

  • Last month, the Supreme Court struck down President Trump's sweeping tariffs.
  • This week, a federal judge ruled that the US government must begin paying out over $130 billion in tariff refunds to businesses.
  • The US Customs agency says it will take 45 days to set up a system to process the tariff refunds.

The players

President Trump

The former US president who imposed the now-invalidated tariffs that are the subject of the refund orders.

US Customs and Border Protection

The federal agency responsible for collecting tariffs and now tasked with setting up a system to process over $130 billion in refunds.

Federal Judge Richard Eaton

The judge who ruled that US importers subjected to Trump's sweeping tariffs are entitled to refunds.

Elizabeth Warren

The Democratic senator who has criticized the Trump administration's efforts to delay tariff refunds.

Scott Bessent

The Treasury Secretary who said the Trump administration may raise global tariffs to 15% 'sometime this week'.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“The administration 'has a responsibility to do everything in its power to ensure that it returns the money it illegally took from the American people.'”

— Elizabeth Warren, US Senator (Yahoo Finance)

“It's my strong belief that the tariff rates will be back to their old rate within five months.”

— Scott Bessent, Treasury Secretary (CNBC)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The Trump administration's efforts to impose new tariffs after the Supreme Court struck down its sweeping duties have faced legal challenges and the requirement to refund over $130 billion in tariff payments, highlighting the political and economic difficulties the White House faces in pursuing its protectionist trade agenda.