U.S. businesses are beginning to receive federal refunds for tariffs imposed in 2025 under the International Emergency Economic Powers Act (IEEPA), which the Supreme Court ruled unlawful in February 2026. The refunds stem from duties previously paid by importers who challenged the legality of the Trump administration's use of emergency powers to justify trade barriers. One small business owner, Sarah Wells, received $10,000 in early May 2026 for a shipment from China, with another $10,000 expected for goods from Cambodia. The U.S. Customs and Border Protection has approved nearly 87,000 claims, finalizing over half and disbursing $35.5 billion in refunds including interest.

The broader repayment program covers roughly $166 billion in contested tariffs. While the refund process has moved faster than typical government timelines, businesses continue to operate under new trade pressures. A 10% tariff remains in place under Section 122 of the Trade Act of 1974, and the administration has launched new investigations under Section 301, which could lead to additional retaliatory measures. Companies like Flexport report clients have already received $137 million in repayments through private logistics channels.

The refunds offer financial relief but do not resolve ongoing uncertainty for importers. With future tariffs still possible and supply chains under strain, firms must continue adapting to shifting trade rules. The Biden administration inherited the repayment obligation after the court’s decision, but the original tariffs were imposed during Trump’s second term. The legal and financial ripple effects are expected to continue through 2026 and beyond.