Philenews

Trump Tariffs: What the Supreme Court Rejection Means and Who Can Claim Compensation

Published February 21, 2026, 09:13
Trump Tariffs: What the Supreme Court Rejection Means and Who Can Claim Compensation

The U.S. Supreme Court ruled that a significant portion of the tariffs imposed by Donald Trump during his presidency were illegal, overturning a key pillar of his economic policy. Subsequently, Trump announced a new global tariff of 10% that will take effect from February 24th for 150 days. The decision nullifies the so-called "retaliatory" tariffs on many products, but not in sectors such as automobiles, steel, and pharmaceuticals. Economists estimate that the decision will lead to a reduction in the average tariff rate from 16.8% to 9.5%. Companies that paid the tariffs can claim compensation, estimated between $130 and $140 billion for 2025. Trump initially estimated that the compensation would be much higher. Governors of states like Illinois and California are calling for refunds to citizens, based on different cost estimates. The Supreme Court’s decision may affect the ability of the U.S. to conclude trade agreements, as the ability to impose tariffs was used as a negotiating tool. The White House clarified that countries with agreements with the U.S. are also subject to the new 10% tariff imposed by Trump. The U.S. government, through a new decree, relies on a 1974 law to balance trade relations with its partners.