US May Have to Refund Half of Trump-Era Tariffs, Treasury Chief Warns
America’s trade wars could soon come with a massive bill. Treasury Secretary Scott Bessent has raised alarms that the U.S. government might be forced to refund about half of the tariffs imposed under Donald Trump if the Supreme Court rules they were unlawful.
Bessent, speaking about the ongoing legal battle, acknowledged the huge financial risk. “We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” he said. That refund could amount to hundreds of billions of dollars, a hit that would shake federal finances.
The controversy stems from Trump’s decision to impose sweeping tariffs using emergency powers under the International Emergency Economic Powers Act (IEEPA). Lower courts have already suggested that this move may have gone beyond what the law allows. The issue is now headed to the Supreme Court, with enforcement temporarily paused until mid-October.
If the Court rules against the administration, importers who paid these tariffs would be legally entitled to refunds. While Bessent stressed his confidence that the government will ultimately prevail, he admitted that a loss would leave the Treasury facing one of the largest refund obligations in U.S. history.
For now, businesses, lawmakers, and taxpayers are watching closely. A decision against Trump’s tariffs would not just reshape trade policy — it could also expose the fragility of relying on executive authority for sweeping economic measures.
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