US Treasury Secretary Scott Bessent on Sunday confirmed that Washington could be compelled to refund billions of tariff income if the Supreme Court invalidates the "reciprocal tariffs" enacted under ex-President Donald Trump.
His assertion followed a federal appeals court decision last month that Trump has overstepped his presidential powers by instituting wide-ranging duties on the majority of US trade partners.
Speaking during an appearance on NBC News' "Meet the Press", Bessent said, "We would have to give a refund on about half the tariffs, which would be terrible for the Treasury...If the court says it, we'd have to do it."
Without citing details, the Treasury Secretary, however, said that there are "numerous other avenues" that can be taken on tariffs, though they would "diminish President Trump's negotiating position".
National Economic Council Director Kevin Hassett also chimed in on a CBS News interview, noting that the administration had "other legal authorities" at their disposal to continue tariffs if the Supreme Court is ruled against. He noted that "Section 232" investigations, which had previously justified steel and aluminum tariffs, were one of the options.
Trump has officially asked the Supreme Court to overturn the lower court ruling that the majority of his tariffs were illegal. The U.S. Court of Appeals for the Federal Circuit said 7–4 on August 29 that Trump went too far in using emergency economic authorities to impose sweeping tariffs, stressing that setting tariffs is "a core Congressional power.
This ruling resonated with an earlier ruling in May by New York's Court of International Trade, which also ruled the measures as illegal.
Filings by the Trump administration say that "delaying a ruling until June 2026 could result in a scenario in which 750 billion to one trillion dollars in tariffs have already been collected, and unwinding them could cause significant disruption."
"The stakes in this case could not be higher," Solicitor General John Sauer said in Wednesday night's filing.
To date, American companies have paid over $210 billion in tariffs deemed illegal by the courts up to August 24. If the Supreme Court confirms the appellate decision, the Treasury could be forced to refund much of this money, according to reports.
Trump had imposed the tariffs under the International Emergency Economic Powers Act after declaring a national emergency in April, citing that adverse trade imbalances were hurting American manufacturing and jeopardizing national security.
But the appeals court has put its decision on hold until October 14, allowing Trump more time to continue arguing his case before the Supreme Court.
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