Can I get my tariff money back now? - The Indicator from Planet Money Recap
Podcast: The Indicator from Planet Money
Published: 2026-02-21
Duration: 9 minutes
Guests: Ted Murphy, Daniel Harberger
Summary
The Supreme Court struck down many of President Trump's tariffs, ruling that the International Emergency Economic Powers Act does not grant the president authority to impose tariffs. This decision raises questions about potential tariff refunds and what legal avenues the president might pursue next.
What Happened
The Supreme Court issued a 6-3 decision that invalidates a significant number of tariffs set by President Trump, declaring that the International Emergency Economic Powers Act (IEPA) does not provide the president with the authority to impose such tariffs. President Trump expressed his disappointment, criticizing the court's decision for not supporting his economic policies.
Trade lawyer Ted Murphy explained that the court didn't question whether there was a national emergency but focused on whether IEPA allowed tariff imposition. The court concluded that tariff powers belong to Congress, and any delegation to the executive branch must be explicit, which was not the case here.
The ruling could lead to businesses seeking refunds for tariffs paid under IEPA, but the process remains unclear. Ted Murphy indicated that his clients are eager to know if they can reclaim some of the estimated $100 billion collected in tariffs.
Despite the ruling, tariffs may not disappear as the president can still impose them under different legal statutes. President Trump announced a new plan to impose a 10% global tariff under Section 122, which offers limited authority compared to IEPA.
Business owners like Daniel Harberger, who runs a pet products company, hope for tariff refunds to reinvest in their companies. Harberger noted that the tariffs have diverted funds away from expansion and innovation.
The episode concluded with uncertainty about how the refund process would work and whether businesses would see any financial relief soon. The Trump administration's next steps and legal challenges will determine the future landscape of U.S. tariffs.
Key Insights
- The Supreme Court ruled 6-3 that President Trump's tariffs were invalid, as the International Emergency Economic Powers Act (IEPA) lacks explicit authority for such measures. This decision underscores that tariff powers are Congress's domain, not the president's.
- Trade lawyer Ted Murphy suggests businesses might seek refunds for tariffs paid under IEPA, amounting to an estimated $100 billion. However, the process for reclaiming these funds remains murky and uncertain.
- Despite losing IEPA-based tariff powers, President Trump plans to impose a 10% global tariff under Section 122. This legal route offers limited authority, highlighting ongoing tension between executive ambitions and legislative constraints.
- Daniel Harberger, owner of a pet products company, hopes tariff refunds could redirect funds toward business growth. Tariffs have previously siphoned off resources meant for expansion and innovation, creating financial strain.
Key Questions Answered
What does The Indicator from Planet Money say about tariff refunds after the Supreme Court decision?
The episode discusses the uncertainty surrounding tariff refunds following the Supreme Court's decision. While businesses are interested in reclaiming tariffs paid under the International Emergency Economic Powers Act, the process and likelihood of receiving refunds remain unclear.
How did the Supreme Court rule on Trump's tariffs according to The Indicator from Planet Money?
The Supreme Court ruled 6-3 that President Trump's tariffs imposed under the International Emergency Economic Powers Act were unauthorized, as the Act does not explicitly grant the president tariff imposition powers, which belong to Congress.
What are the implications of the Supreme Court's tariff decision on businesses?
Businesses like Daniel Harberger's pet products company are hopeful for tariff refunds, which could allow for reinvestment in growth and innovation. However, the refund process is uncertain, and tariffs may continue under different legal statutes.