There remain questions over what happens to billions of dollars collected by the U.S. government after widespread tariffs imposed by President Donald Trump were struck down by the Supreme Court.
In writing the majority opinion, Chief Justice John Roberts did not spell out a mechanism for the government to refund businesses affected by the tariffs. Many of those costs were likely passed on to consumers. It is possible that the government can keep the billions raised through now-illegal tariffs, but that would likely come with additional legal scrutiny.
The federal government has had a process for handing out tariff refunds to companies under 19 U.S.C. § 1514. But this has generally been used as a mechanism for companies that disagree with the government's assessment on how to classify imported items.
Some companies, such as Costco, have already filed suit against the federal government in hopes of getting refunds.
"I think we would expect an even greater march toward the court on the part of companies in order to try to secure those refunds," said Greta Peisch, a former general counsel with the U.S. Trade Representative. "We again don't know exactly what process or how those refunds will be processed. But I think at the very least, many companies feel that the best way to ensure that they're in line to get those refunds is to file suit at the Court of International Trade."
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The Trump administration said in December that it collected $200 billion in tariffs in 2025. Penn Wharton estimated that about $170 billion was collected as a direct result of Trump-imposed tariffs.
The tariffs were also used as justification to extend tax breaks that were set to expire at the end of 2025, as Trump said tariffs would increase federal revenue. Without billions in tax revenue, it remains unclear how the government will make up the difference.
In writing a dissenting opinion, Justice Brett Kavanaugh addressed how messy refunding tariff payments could be.
"Refunds of billions of dollars would have significant consequences for the U. S. Treasury," he said. "The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers. But thatprocess is likely to be a 'mess,' as was acknowledged at oral argument."
Yale University’s Budget Lab issued a November 2025 report, estimating tariffs add about $1,400 to annual expenses for the median U.S. household, with costs varying by income level. Clothing, electronics and metal goods tend to be among the most impacted categories, according to Yale.
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California Gov. Gavin Newsom said companies should get their money back right away.
“Time to pay the piper, Donald. These tariffs were nothing more than an illegal cash grab that drove up prices and hurt working families, so you could wreck longstanding alliances and extort them," he said. Every dollar unlawfully taken must be refunded immediately — with interest. Cough up!”
