If the U.S. Supreme Court ruled against President Donald Trump‘s tariffs policy next year, it would cost the U.S. billions, according to Treasury Secretary Scott Bessent.
After a federal appeals court ruled last month that many of Trump’s tariffs were illegal, the administration asked the Supreme Court for an expedited ruling in the case.
In a Sunday interview with NBC, Bessent said that if the High Court’s ruling came down next summer against Trump’s tariffs on foreign countries, the U.S. would have to refund “about half” of the $750 billion to $1 trillion in tariffs he said would have already been collected, which “would be terrible for the treasury.”
Newsweek contacted the Treasury Department for comment by email outside normal business hours.
Why It Matters
Tariffs, a cornerstone of Trump’s economic policy, have caused difficulties in global markets and tension with U.S. allies. On August 29, an appeals court ruled against the “reciprocal” tariffs Trump issued in April on most U.S. trading partners and those implemented in February against China, Canada and Mexico in an attempt to stop imports of fentanyl.
The court’s decision largely upholds the May ruling by the U.S. Court of International Trade in New York, which found that Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify tariffs exceeded “any authority granted to the President.” A Supreme Court ruling against Trump’s tariffs could result in a refund bill that one expert described as “the largest unplanned government expenditure in modern history.”
What To Know
On NBC’s Meet the Press, Bessent said he was confident the Supreme Court would not rule against the Trump administration.
He added that the government would comply with the court’s decision if it did rule against the tariffs but argued that doing so would be costly.
“Delaying a ruling until June 2026 could result in a scenario in which $750 billion to $1 trillion in tariffs have already been collected, and unwinding them could cause significant disruption,” he told NBC.
Speaking with Reuters, the treasury secretary also said he was working on a legal brief for the U.S. solicitor general, who is overseeing the government’s appeal to the Supreme Court.
Bessent said the brief would cover the need to stop fentanyl coming into the country and analyze the U.S.’s trade imbalances.
Revenue from Trump’s tariffs have amounted to $142 billion as of July, more than double what it was at the same time last year, according to Treasury Department data.
What People Are Saying
Nicholas Creel, an assistant professor of business law at Georgia College and State University, wrote in a Newsweek op-ed about the ramifications of the Supreme Court ruling against the tariffs: “American taxpayers could face the largest unplanned government expenditure in modern history: a massive refund bill that could easily exceed $500 billion, plus interest, at precisely the moment when Treasury markets are already showing dangerous signs of stress.”
Treasury Secretary Scott Bessent told Reuters: “I’m confident the Supreme Court will uphold it—will uphold the president’s authority to use IEEPA. And there are lots of other authorities that can be used—not as efficient, not as powerful.”
President Donald Trump wrote on Truth Social on August 31: “More than 15 Trillion Dollars will be invested in the USA, a RECORD. Much of this investment is because of Tariffs. If a Radical Left Court is allowed to terminate these Tariffs, almost all of this investment, and much more, will be immediately canceled! In many ways, we would become a Third World Nation, with no hope of GREATNESS again. TIME IS OF THE ESSENCE!!!”
What Happens Next
It remains to be seen whether the Supreme Court will expedite its ruling on the tariffs.
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