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By Dan Gooding and Gabe Whisnant
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A federal appeals court on Monday dealt President Donald Trump a new legal setback by sending VOS Selections v. Trump back to the U.S. Court of International Trade, advancing a fight over refunds tied to tariffs the Supreme Court has already ruled unlawful.
The decision moves the case closer to determining whether billions of dollars collected under those tariffs must be returned, with some Democratic Governors, including New York's Kathy Hochul and Illinois' JB Pritzker, calling for $1,700 checks for each American family.
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Why It Matters
The ruling clears a key procedural hurdle for businesses seeking refunds of duties already paid, but it does not guarantee that Americans will receive direct checks or spell out how any repayment process would work. Courts have yet to decide how refunds would be administered or how long the process could take, leaving open questions about whether consumers, who often paid higher prices because of the tariffs, would see any money returned.
What To Know
VOS Selections, a New York City–based wine and spirits importer, was the lead plaintiff in the case challenging the tariffs. Neal Katyal, an attorney representing the company, said on X that the court had rejected the government’s push for delay, writing that the legal team would now move forward in seeking refunds tied to the unlawful duties.
Pushing the case back to the Court of International Trade allows the refund process to begin, Liberty Justice Center said on X.
Multiple companies sued the government over the tariffs, with FedEx saying it will pass on a portion of the refund it receives to its customers. Other companies, including Dyson, Costco, and Dollar General, have sued but not made such explicit promises.
Are We Getting a Tariff Check?
Trump previously said that the U.S. was bringing in “trillions of dollars” and that a “dividend of at least $2,000 a person (not including high income people!) will be paid to everyone.”
However, the Committee for a Responsible Federal Budget previously predicted that such payments would cost $600 billion per year, compared with the roughly $300 billion that Trump’s tariffs are expected to raise each year.
Court records show that the government had previously acknowledged its duty to refund, with interest, any tariffs later deemed unlawfully collected. In February, Treasury Secretary Scott Bessent noted that the Court provided no guidance on rebates and said the matter could play out “for weeks, months, years” in lower courts.
Under the Tariff Refund Act of 2026, introduced in the U.S. Senate, U.S. Customs and Border Protection (CBP) would be compelled to issue refunds for the estimated $175 billion in duties. The bill's text sets a 180-day deadline for the payments, prioritizing small businesses, and states larger businesses "should pass on the refunds to their customers, including small businesses and families impacted by those duties."
How Did the Supreme Court Rule on Tariffs?
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The Supreme Court ruled 6–3 against Trump’s sweeping global tariffs, holding that he did not have the legal authority to impose them under a national emergency law. The justices said the International Emergency Economic Powers Act (IEEPA), originally passed in 1977, does not authorize a president to impose tariffs.
Under the U.S. Constitution, the power to impose taxes and tariffs belongs to Congress, not to the president acting alone, the new decision holds.
Chief Justice John Roberts, writing for the majority, said the president must point to clear congressional authorization to impose tariffs, and the IEEPA does not provide it.
What People Are Saying
Sarah Albrecht, chairman of the Liberty Justice Center, in a statement shared on X: "The Liberty Justice Center is proud to have led the fight to challenge the unconstitutional tariffs that devastated small businesses around the country. Federal courts at every level have now recognized that these unilateral tariffs, imposed without Congressional authorization, are unlawful and cannot stand...
"The Liberty Justice Center’s work is just beginning. We intend to help small businesses navigate the refund process, including developing a centralized database, information portal, and referral network to connect affected companies with qualified attorneys to pursue potential refund claims.”
William Reinsch, a senior economist with the Center for Strategic and International Studies (CSIS), told Newsweek previously: “Nobody will get any money back any time soon, but eventually importers who seek refunds should get them, but the burden will be on the importer to take the initiative."
Senator Edward Markey, ranking member of the Small Business and Entrepreneurship committee, in a statement last week: “Trump’s illegal tariff taxes cost small businesses, consumers, and families nearly $135 billion. That money must be repaid immediately."
House Speaker Mike Johnson, a Louisiana Republican, wrote on X last month: "No one can deny that the President’s use of tariffs has brought in billions of dollars and created immense leverage for America’s trade strategy and for securing strong, reciprocal America-first trade agreements with countries that had been taking advantage of American workers for decades. Congress and the Administration will determine the best path forward in the coming weeks."
What Happens Next
Trump has remained resolute in his belief that tariffs will fuel economic growth in the U.S. and has said his administration will introduce additional tariffs in the coming weeks and months.
Update 3/2/26, 2 p.m. ET: This article was updated with additional information.
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