California Gov. Gavin Newsom called on President Donald Trump to repay billions of dollars in tariff revenue following the Supreme Court’s decision striking down the administration’s sweeping import duties, characterizing the levies as unlawful and economically harmful.
In a 6–3 ruling, the Supreme Court of the United States determined that President Trump exceeded his authority under the International Emergency Economic Powers Act of 1977 when he imposed tariffs on goods from more than 100 countries.
Time to pay the piper, Donald.
— Governor Gavin Newsom (@CAgovernor) February 20, 2026
Your tariffs were nothing more than an illegal cash grab that drove up prices, hurt working families, and wrecked longstanding global alliances.
Every dollar your administration unlawfully took needs to be immediately refunded — with interest. https://t.co/UCFc55VUBw
Newsom responded with a pointed message directed at the president. “Time to pay the piper, Donald,” he wrote. “Your tariffs were nothing more than an illegal cash grab that drove up prices, hurt working families, and wrecked longstanding global alliances. Every dollar your administration unlawfully took needs to be immediately refunded — with interest.”
The court’s decision did not resolve what should happen to the more than $130 billion already collected through the tariffs, leaving that question to lower courts. In his dissent, Justice Brett Kavanaugh warned that any refund process could prove complicated, describing it as likely to be a “mess.” The administration has indicated that litigation over potential repayments could continue for years.
The tariffs, first imposed in 2025 and later expanded to cover most major U.S. trading partners, were framed by the White House as necessary to reduce trade deficits, raise revenue and strengthen the country’s negotiating position abroad. The administration argued that the emergency law permitted the president to “regulate … importation” during national emergencies and that the term encompassed the authority to levy duties. The majority of the court rejected that interpretation, emphasizing that when Congress grants tariff power, it does so explicitly.
The ruling marks one of the most significant judicial setbacks of Trump’s second term, after a series of emergency decisions in which the court had allowed key administration policies to proceed. The majority included two Trump appointees, while three conservative justices dissented.
Newsom’s comments come amid an increasingly public rivalry with the White House. In recent weeks, the governor has criticized the administration’s rollback of federal climate regulations and warned that U.S. allies were reassessing their economic partnerships in response to what he described as instability in American trade policy. He has positioned California as a counterweight to federal policy, highlighting the state’s economic size and clean energy initiatives.
The political implications of the ruling extend beyond trade policy. As the 2028 presidential cycle begins to take shape, both Newsom and Vice President JD Vance are viewed as potential contenders. On prediction markets, Vance currently holds higher odds than Newsom, underscoring the emerging partisan contrast over economic and trade policy following the court’s decision.
With lower courts expected to address the mechanics of potential refunds and the administration signaling it may pursue alternative tariff authorities, the debate over executive power and trade policy is likely to continue well beyond the ruling itself.
