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Trump tariffs unravel as court opens door to billions in refunds

A Maersk cargo ship loaded with shipping containers navigates through New York Bay, January 23, 2026. (AFP Photo)
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A Maersk cargo ship loaded with shipping containers navigates through New York Bay, January 23, 2026. (AFP Photo)
February 28, 2026 08:57 AM GMT+03:00

The United States may have to return "hundreds of billions of dollars" collected under his global tariff measures after a Supreme Court ruling struck them down, President Donald Trump said on Friday.

The court earlier ruled 6-3 that the International Emergency Economic Powers Act (IEEPA) did not authorize the president to impose broad-based tariffs across multiple countries, removing the legal foundation for the sweeping duties.

Trump warns of massive tariff payback

Slamming the decision, Trump argued that the outcome could result in large repayments to foreign governments and companies.

"The recent decision of the United States Supreme Court concerning tariffs could allow for hundreds of billions of dollars to be returned to countries and companies that have been ‘ripping off’ the United States of America for many years," he wrote on his Truth Social platform.

"Is a rehearing or readjudication of this case possible???"

A rehearing is considered unlikely following the court’s judgment.

Shipping containers and container trucks seen at the LATC-Union Pacific Los Angeles Transportation Center rail yard in Los Angeles, California, February 24, 2026. (AFP Photo)
Shipping containers and container trucks seen at the LATC-Union Pacific Los Angeles Transportation Center rail yard in Los Angeles, California, February 24, 2026. (AFP Photo)

White House seeks delay in refund cases

The administration moved to pause legal action tied to potential refunds. In a filing with the United States Court of Appeals for the Federal Circuit, government lawyers requested up to four months before refund-related litigation resumes at the United States Court of International Trade.

"In a case on review from a federal court, the Supreme Court sends down its judgment 32 days after entry of judgment," the government said in its filing. It sought an additional 90 days "to allow the political branches an opportunity to consider options."

The Federal Circuit had ruled in August last year that many of the tariffs were unlawful but returned the refund issue to the Court of International Trade. It delayed issuing its mandate while the case was under review by the Supreme Court.

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Trump announces 15% tariff under temporary trade law

On the same day the Supreme Court ruled that he had exceeded his authority, Trump signed a decree imposing a 10% global tariff under Section 122 of the Trade Act of 1974, which allows temporary tariffs of up to 150 days in response to "large and serious" balance-of-payments deficits.

Trump later said he raised the rate to 15% and described it as "effective immediately." White House officials clarified that only the 10% order had been formally signed, with any increase to 15% to take effect at a later stage.

Under Section 122, tariffs may remain in place for 150 days unless Congress approves an extension. The administration has said it will explore options regarding that requirement.

February 28, 2026 10:47 AM GMT+03:00
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