Treasury May Owe Refunds If US Tariffs Are Overturned
U.S. Treasury Secretary Scott Bessent warned that the government may need to refund about half of the tariffs collected under President Trump’s administration if the Supreme Court rules them illegal. The potential refund, amounting to tens of billions of dollars, poses a significant challenge to Treasury finances.
Legal Challenges Mount Over Tariff Authority
Several lower courts have ruled that Trump overstepped presidential authority when imposing tariffs under the International Emergency Economic Powers Act (IEEPA). The administration has appealed, and the Supreme Court is expected to hear the case in November. Bessent admitted that an unfavorable verdict could hurt the Treasury and weaken U.S. leverage in trade talks.
Market Reactions And Contingency Planning
The possibility of large-scale refunds has already unsettled financial markets, with investors anticipating increased government debt if the ruling goes against the administration. While Bessent voiced confidence in winning at the Supreme Court, he confirmed that contingency measures are being drafted in case the refunds must be issued.
