U.S. Treasury May Be Forced to Refund Half of Trump-Era Tariffs If Supreme Court Rules Against Them, Says Secretary Bessent
Washington, D.C., September 8, 2025 — U.S. Treasury Secretary Scott Bessent warned on Sunday that the federal government may be required to issue refunds on nearly half of the tariffs imposed under former President Donald Trump’s “reciprocal tariffs” policy—if the Supreme Court upholds a lower court ruling against them.
“We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,”
Bessent said during an interview on NBC’s Meet the Press.
Bessent also noted that such a ruling would significantly weaken former President Trump’s negotiating position in future trade talks.
“If the court says it, we’d have to do it,” he acknowledged.
Alternative Legal Options Under Review
In a separate interview, National Economic Council Director Kevin Hassett told CBS News that the administration is considering other legal avenues to impose tariffs, should the Supreme Court rule against Trump’s authority under the current legal framework.
Hassett specifically mentioned Section 232 investigations, the same provision previously used to impose tariffs on steel and aluminum, as one of several options being reviewed by the administration.
Appeals Court Ruling Challenges Trump’s Authority
On August 29, a federal appeals court ruled that Trump’s use of “reciprocal tariffs” exceeded his authority under the International Emergency Economic Powers Act (IEEPA).
“We discern no clear congressional authorization by IEEPA for tariffs of the magnitude of the Reciprocal Tariffs and Trafficking Tariffs,”
the court stated in its majority opinion.
While the tariffs—most recently enacted in early August—remain in effect for now, the court has delayed enforcement of its ruling until October 14, giving the government time to appeal.
In response, the Trump administration filed an appeal with the U.S. Supreme Court, arguing that striking down the tariffs would make America a “poor nation” incapable of protecting its economic interests.
Bessent: Confident of Supreme Court Win
Despite the looming legal uncertainty, Secretary Bessent expressed optimism about the outcome of the case.
“I’m confident President Trump will win in the Supreme Court,” he stated.
Key Takeaway:
If the Supreme Court rules against the Trump-era tariffs, the U.S. Treasury could be on the hook for tens of billions of dollars in refunds—an outcome that could impact federal finances, market stability, and ongoing trade negotiations.
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