Bessent Holds on Tariff Refunds After Supreme Court Ruling
In Washington, Treasury Secretary Scott Bessent has paused the implementation of a lower court’s decision regarding rebates linked to President Trump’s International Emergency Economic Powers Act (IEEPA) tariffs, following a recent Supreme Court ruling.
“The Supreme Court didn’t really address that,” Bessent mentioned during an appearance on CNN’s “State of the Union” on Sunday. “They sent it back to the lower courts, and we plan to adhere to their guidance, but it may be weeks or even months before we get clarity.”
Since the Supreme Court invalidated the IEEPA tariffs—once a central part of Trump’s protectionist strategy—numerous companies have been seeking refunds through lawsuits.
Bessent had previously cautioned that any strike against the IEEPA tariffs could lead to a complicated refund situation for the Trump administration.
The Supreme Court, in a 6-3 decision, opted not to clarify how the refund process should unfold, largely steering clear of the topic during oral arguments last November.
As of last December, over $133 billion had been collected from the IEEPA tariffs, part of a total of $251 billion garnered since Trump began his second term, according to U.S. Customs and Border Protection.
Last year, Trump hinted at the possibility of issuing dividend checks to American households from these tariffs. Illinois Governor J.B. Pritzker even suggested that taxpayers should receive refunds in light of the Supreme Court’s decision.
Despite the setback with the IEEPA, Trump has sought alternative methods for imposing tariffs, favoring IEEPA for its flexibility. It’s notable that IEEPA doesn’t explicitly mention tariffs and has not been utilized by previous presidents for such purposes.
Bessent, who attended the Supreme Court’s arguments last November, had anticipated that the court would uphold the IEEPA tariffs but argued that Trump’s protectionist policies would persist regardless.
“Mr. President, your administration is committed to bringing manufacturing back to the U.S. and addressing our trade imbalances. That’s really the key issue,” insisted the Treasury Secretary.
“We aim to swiftly implement Section 122 tariffs, and our revenue forecasts for 2026 remain unchanged.”
Following the Supreme Court ruling, Trump has invoked Section 122 of the Trade Act of 1974 to reintroduce a basic 10% tariff, escalating it to 15%.
However, Section 122 tariffs are only valid for 150 days and necessitate Congressional approval for any further increases. Yet, the Trump administration is looking to use this time to navigate the procedures for applying these tariffs under different legal frameworks.
Bessent also noted that the Department of Commerce will initiate a Section 232 investigation. He mentioned that tariffs from Section 232 are often considered from a national security viewpoint, typically aimed at specific sectors rather than universally.
Moreover, Section 301 allows for retaliatory tariffs following thorough investigations, but these tariffs are set to expire in four years.
“I’ve been in discussions and have assured stakeholders for a year now that, regardless of the outcome in this case, tariffs will be imposed,” USTR Director Jamison Greer stated on CBS News’ “Face the Nation” on Sunday. “The president’s approach is designed to continue.”
Greer added, “No one has claimed the contract is broken. They’re curious about the future, and I’m actively keeping them informed.”
