Import Trade Management Order Invalidated: Illinois Demands $8.68B Refund After Supreme Court Ruling

On February 20, 2025, the U.S. Supreme Court voted 6-3 to impose significant restrictions on President Trump’s tariff authority. This ruling determined that the International Emergency Economic Powers Act (IEEPA) of 1977, which served as the legal basis for the Import Trade Management Order, does not grant the president the authority to impose tariffs. As a result, some of the most extensive tariff strategies in modern American history were invalidated.

Illinois Governor JB Pritzker immediately responded by demanding compensation from President Donald Trump for the state’s taxpayers. According to the official invoice released by Pritzker, Illinois is seeking $86,679,261,600, approximately $1,700 per household, based on the economic burden caused by tariffs imposed under the Import Trade Management Order on consumers and businesses within the state.

Supreme Court Limits Trump’s Tariff Powers: Details of the Unconstitutional Ruling

Chief Justice John Roberts stated in the opinion, “IEEPA does not authorize the president to impose tariffs.” The ruling invalidated all measures under the Import Trade Management Order, including the 25% tariffs on most imports from Canada and Mexico, expanded tariffs on Chinese products, and broad retaliatory tariffs of 10% on many countries.

In a letter published by Pritzker, he enumerated the chaos caused by Trump’s tariff policies: “Your tariffs have confused farmers, angered our allies, and caused food prices to soar. This morning, the Supreme Court justices you appointed notified us that these measures are also unconstitutional,” he said, strongly demanding compensation for damages caused by illegal policies.

Illinois Residents’ Burden: Basis for Refund Claims

Illinois has a diverse economy heavily dependent on international trade. According to NPR Illinois, the state conducts over $127 billion annually in trade with Canada, Mexico, and China, with tariffs under the Import Trade Management Order directly affecting key imports such as oil, beer, and electronics used by local businesses and consumers.

The agricultural sector has also been severely impacted. Data from the Illinois Department of Agriculture shows that soybean and feed grain sectors face increasing risks from retaliatory tariffs, threatening agricultural income in major exporting states nationwide. As Pritzker emphasized, Illinois families have “paid the price for illegal tariffs—at grocery stores, hardware stores, and around kitchen tables.”

Economic Ripple Effects and Nationwide Impact

Immediately after the Supreme Court ruling, President Trump signed a new executive order imposing a 10% global tariff based on another legal authority under Section 122 of the Trade Act of 1974. While the Import Trade Management Order was rendered invalid, his broader tariff strategy continues under different legal grounds.

According to economists at the Penn Wharton Budget Model (PWBM), the ruling could jeopardize over $17.5 billion in U.S. tariff revenue. Data cited by AP and JPMorgan Chase Research indicates that tariffs paid by U.S. medium-sized companies have tripled in recent years, with most costs passed on to domestic consumers rather than foreign exporters.

Companies nationwide are increasing pressure on the government to refund tariffs imposed unlawfully under the Import Trade Management Order. Illinois is among the first states to calculate and publicly announce such refund claims.

White House Pushback and Future Outlook

The White House responded strongly. A spokesperson commented, “Illinois’s extremely high taxes and regulations are as burdensome as JB Pritzker’s own personal expansion,” and added that if Pritzker truly cares about providing economic relief, he should start with his own state government.

Pritzker did not respond and warned that if demands are not met, he will pursue “further measures.” The official invoice bears a stamp reading “Past Due – Delinquent,” implying potential legal action if ignored.

While the Supreme Court’s decision limits the president’s tariff authority under the Import Trade Management Order, it does not eliminate other trade law powers. However, the ruling fundamentally questions the legal basis of Trump’s tariff strategy, and similar refund claims are likely to emerge from other states. Illinois’s $8.68 billion claim is the first official estimate illustrating the scale of economic damage caused by the Import Trade Management Order.