The Supreme Court struck down a bunch of Trump's tariffs. Now what? - Planet Money Recap

Podcast: Planet Money

Published: 2026-02-21

Duration: 26 min

Summary

The Supreme Court declared President Trump's sweeping tariffs illegal, prompting small business owners like Cara to seek refunds on the money spent under these tariffs. The ruling raises questions about the future of tariff policy and the potential processes for reclaiming funds.

What Happened

In a significant decision, the U.S. Supreme Court ruled that President Trump's tariffs, which affected products from almost every country, were illegal. Small business owner Cara Dyer expressed her relief and hope for getting some of the money back that her business had spent on these tariffs. The U.S. had collected over $100 billion under these tariffs, creating a potential market for refunds that many businesses are now eager to explore.

The ruling was based on the International Emergency Economic Powers Act (IEPA), a law that the Trump administration had leveraged to impose the tariffs. Georgetown Law Professor Kathleen Clausen explained that the law does not explicitly grant the president the authority to impose such broad tariffs, leading the justices to conclude that Trump's actions exceeded the legal boundaries of IEPA. The court's decision, spanning 170 pages, emphasized that the statute does not support the imposition of sweeping tariffs, signifying a clear and unambiguous ruling against the previous administration's tariff strategy.

As businesses and consumers await guidance on how to navigate the refund process, many questions remain unanswered. Customs lawyer Maureen Thorson offered insights into potential avenues for reclaiming tariff payments, noting that there are established processes for refunds, albeit complicated. With many regular customers having indirectly paid tariffs on various goods, the episode highlights the complexities of U.S. tariff law and the challenges that lie ahead for those seeking reimbursement.

Key Insights