Fact Brief: Did a judge rule California corporations are ‘entitled’ to a refund for the overturned Trump tariffs?

A recent ruling held that all affected importers are entitled to refunds for the unconstitutional tariffs, although the decision is expected to be challenged in court.

In April 2025, President Trump invoked the International Emergency Economic Powers Act to impose a slate of tariffs, citing trade deficits, drugs, and crime. The U.S. Supreme Court ruled this action unconstitutional in February 2026.

In February 2026, U.S. Senate Democrats created a bill requiring the U.S. Customs and Border Protection to prioritize small businesses when refunding the tariffs.

Estimated IEEPA tariffs paid through December 2025 total nearly $130 billion, including $26 billion in California, according to Axios.

If the Trump Administration’s appeal is unsuccessful, Penn Wharton Budget Model estimates it could pay out $175 billion in refunds.

There are currently no plans to issue refunds to American consumers.