The United States could refund up to US$1 trillion (A$1.528 trillion) if the Supreme Court rules many of its tariffs were illegally imposed, according to Treasury Secretary Scott Bessent.
The Treasury may issue from $750 billion to $1 trillion in rebates, Bessent reportedly wrote in a Supreme Court filing. The U.S. collected over $72 billion in revenue from country-specific tariffs between April and August.
Bessent had previously said the U.S. could refund about half of the tariff revenue collected so far if the Supreme Court struck down the policy. “We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” he told NBC News over the weekend.
The figure Bessent estimated would also include country-specific tariff revenue that the U.S. government expects to collect by June 2026.
The U.S. Federal Circuit Court of Appeals ruled at the end of August that many of U.S. President Donald Trump’s tariffs were illegal. Under the decision, current tariffs may remain in place until 14 October.
While Trump has claimed the International Emergency Economic Powers Act (IEEPA) allows him to impose country-specific tariffs to address trade deficits, the court said IEEPA does not give the president that authority.
The Trump administration has asked the Supreme Court to quickly accept and rule on the case, requesting that arguments begin in early November. The Supreme Court has not yet said if it will do so.
“I'm confident the Supreme Court will uphold it — will uphold the president's authority to use IEEPA,” Bessent said last week.
He said the government was also considering other options to impose tariffs, however, such as the Smoot-Hawley Tariff Act of 1930. This would allow tariffs of up to 50% for five months against countries discriminating against U.S. trade.
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