As the US SC Strikes Down Donald Trump Tariffs, Are Refunds Coming Next? US Secretary Responds

The US Supreme Court on Friday, February 20, struck down US President Donald Trump's tariff order, citing that he had exceeded his authority when he imposed levies on nearly every US trading partner last year. The US SC ruling on Trump tariffs was followed by Donald Trump's announcement to bring in fresh 10% tariffs in the coming week.

Several Democratic leaders welcomed the Supreme Court's ruling on the Trump-era tariffs. Meanwhile, many business leaders and industry stakeholders also hailed the decision, expressing hope that they may receive refunds for the billions of dollars paid under the tariff regime.

Trump Tariffs: How Much Refund Is Expected?

The US Supreme Court ruling on Trump tariffs could put an estimated $175 billion in US tariff collections at risk of refunds, Reuters reported, citing a Penn Wharton study. The estimate by Penn Wharton was based on a ground-up forecasting model that uses tariff rates by product and country for specific duties imposed by Trump.

Is the Trump Administration bound to make refunds to companies that paid tariffs?

The SC ruling came as a major setback for Donald Trump as the SC underlined that Trump overstepped his authority using IEEPA, a sanctions law, to impose tariffs on imported goods. While the SC order called Trump's tariffs illegal, there was no clarity regarding returning the money to those who paid taxes.

"The Supreme Court did not talk explicitly about the $175 billion in tariffs that could potentially be refunded. On the other hand, their ruling today clearly does open that door for those refunds to be demanded," PWBM director Kent Smetters told Reuters.

What Did the Trump Admin Say On Tariff Refunds?

The SC ruling on Trump tariffs has raised expectations of refunds among importers. In fact more than 1,000 businesses had already asked for tariff refunds, even before the ruling was announced, Alex Jacquez, chief of policy and advocacy at the liberal think tank Groundwork Collective, CBS.

In an interaction with reporters, Donald Trump, said that he expected any potential refunds to be locked up in litigation for years, reported BBC. US Treasury Secretary Bessent also said, after the U.S. ruling announcement, that the issue of refunds could drag for years.

Speaking at an event in Dallas, Bessent said revenues already brought in through the IEEPA tariffs were "in dispute" since the Supreme Court did not provide any instructions on refunds.

Meanwhile, Donald Trump condemned the US ruling. Trump lashed out at the Supreme Court justices who ruled against him, calling them "fools and lapdogs". "The Supreme Court's ruling on tariffs is deeply disappointing, and I'm ashamed of certain members of the Court, absolutely ashamed for not having the courage to do what's right for our country," Trump said in a news conference at the White House Friday, just hours after the verdict came in.