Supreme Court Ruling Could Force Billions in US Tariff Refunds
Scott Bessent says nearly half of tariffs could be refunded if Supreme Court strikes down Trump’s reciprocal duties, impacting US trade strategy.
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U.S. Treasury Secretary Scott Bessent said Monday that nearly half of the tariff revenue collected under former President Donald Trump’s trade measures may need to be returned if the Supreme Court rules those duties unlawful.
Speaking to NBC News, Bessent noted the financial impact such a decision would create for federal accounts. “Roughly half the tariffs would have to be refunded,” he said. “If the court orders it, the Treasury would comply.”
The comments follow a federal appeals court ruling on August 29, which determined that Trump’s “reciprocal” tariffs exceeded presidential authority. Judges found that the International Emergency Economic Powers Act (IEEPA) does not grant the White House the power to impose tariffs at the scale introduced earlier this year. The panel wrote that no clear congressional authorization supported the trade measures in question.
Bessent acknowledged that while the Treasury is preparing for possible refunds, scaling back the duties could undercut the administration’s leverage in ongoing trade talks. “Any alternative approach would reduce the president’s negotiating position,” he said.
The Biden administration has since appealed to the Supreme Court, urging it to reverse the decision. Officials argued that eliminating the tariffs could weaken the country in trade disputes and limit its capacity to pressure foreign markets.
The U.S. and European Union are also reviewing new tariff options aimed at buyers of Russian goods, while India remains under observation as a potential focus of trade policy discussions.
The Supreme Court is expected to consider the case in the coming months, a ruling that could redefine the limits of presidential authority over emergency trade actions.
