A federal trade court judge ordered the U.S. government yesterday to refund more than $130 billion in tariffs that the Supreme Court ruled illegal last month. Over 300,000 importers—including tech companies like FedEx, Costco, and L’Oreal—can now claim tariff refunds for hardware, cloud infrastructure components, and semiconductors paid between February 2025 and February 2026. The catch: no one knows when they’ll see the money.
The Legal Battle
The Supreme Court’s 6-3 decision on February 20 gutted presidential tariff authority under IEEPA (International Emergency Economic Powers Act). Chief Justice John Roberts was blunt: “Had Congress intended to convey the distinct and extraordinary power to impose tariffs, it would have done so expressly.” The ruling invalidated Trump’s “Reciprocal Tariffs” from April 2025 and tariffs tied to fentanyl.
Roberts invoked the Major Questions Doctrine—requiring explicit Congressional authorization for decisions of “economic and political significance.” In other words, presidents can’t unilaterally impose tariffs and call it emergency power.
The trade court’s March 4 order directed U.S. Customs and Border Protection to process refunds. The Federal Circuit already rejected the Trump administration’s 90-day delay attempt on March 2.
Tech Sector Impact: Who Gets Refunds
Tech companies stand to recover billions. Computer and server imports face a $14 billion impact from 10% tariffs, semiconductors another $3 billion. Cloud infrastructure took a bigger hit: 25% tariffs on $250+ billion in Chinese imports, including data center components. China produces 30% of the world’s server equipment, meaning AWS, Azure, and Google Cloud likely paid substantial sums.
FedEx filed suit and pledged to pass refunds back to customers. Apple got an exemption in April 2025 for devices assembled in China. Over 2,000 lawsuits are pending.
The Refund Process
CBP must manually review 70+ million entries—a process the agency calls “unprecedented” in scale. The court set no timeline. Refunds include interest but may be offset by other duties owed.
The Trump administration is expected to appeal, potentially dragging this out for months or years. Tech companies are entitled to refunds but don’t know when they’ll arrive.
Business Reactions
Small businesses took the hardest hit. Beth Benike of Busy Baby in Minnesota halted China shipments to avoid a $48,000 charge. “I should have had it shipped last month, but I was waiting for the Supreme Court decision,” she said.
Rachel Rozner of Elden Street Tea Shop called the ruling “astronomical” but fears the government will “run out of funds” before everyone gets paid—not irrational given the scale.
Drew Greenblatt of Marlin Steel stands nearly alone in opposing the ruling, arguing tariffs created a “level playing field” for U.S. manufacturers.
What’s Next
Appeals are almost certain. CBP still faces reviewing 70 million transactions. The University of Pennsylvania estimates refunds could reach $175 billion—higher than CBP’s $130 billion figure.
Refunds go to businesses, not consumers. Tariff costs were passed through as price increases, but retailers won’t drop prices now. If you’re waiting for cheaper cloud services or hardware, don’t hold your breath. Hyperscalers will likely pocket refunds as recovered costs.
The ruling sets precedent: presidential emergency powers have limits. Future tariffs require Congressional action. For tech companies, billions are owed, but no one knows when the checks arrive.
