Treasury Secretary Bessent Warns of Tariff Refunds if Supreme Court Rules Against Trump

Washington, D.C. — Treasury Secretary Scott Bessent stated on Sunday that if the Supreme Court upholds a ruling against President Donald Trump’s “reciprocal” tariffs, the U.S. Treasury may have to refund a significant amount of collected duties. Speaking 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.”

Bessent’s comments come as the Trump administration has appealed a federal appeals court ruling that deemed many of Trump’s tariffs illegal. The court noted that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded presidential authority. The appeals court paused its ruling until October 14, allowing the administration time to appeal to the Supreme Court.

During the interview, Bessent expressed confidence that the administration would prevail at the Supreme Court, stating, “I am confident that we will win at the Supreme Court. But there are numerous other avenues that we can take.” He did not provide further details on those alternatives, but acknowledged they could weaken Trump’s negotiating position.

Kevin Hassett, Director of the National Economic Council, also addressed the possibility of alternative legal measures, including investigations under Section 232, which would allow tariffs based on national security concerns. He indicated that these could be implemented if the Supreme Court ruled against the current tariff policy.

As of July, the U.S. Treasury reported collecting approximately $28 billion in customs duties, with total collections from tariffs exceeding $142 billion since their implementation. However, recent economic reports indicate that the tariffs have led to job losses in manufacturing, with the Bureau of Labor Statistics reporting 12,000 manufacturing jobs lost in August alone.

Bessent, however, downplayed concerns raised by prominent companies like John Deere and Nike, who have warned that the tariffs could significantly increase costs for consumers. He stated, “There aren’t companies coming out and saying, ‘Oh, because of the tariffs, we’re doing this.’”

While the administration continues to push for its tariffs, many experts warn that a Supreme Court ruling against them could result in the largest unplanned government expenditure in modern history, due to the potential refunds owed to businesses affected by the tariffs.

The administration is urging an expedited ruling from the Supreme Court, as delays could complicate the financial impact on the Treasury and the economy.