Three Senate Democrats are calling on the government to refund approximately $175bn in tariff revenues that the Supreme Court ruled were unlawfully collected under orders from Donald Trump. Senators Ron Wyden, Ed Markey, and Jeanne Shaheen are introducing a bill that would require US Customs and Border Protection to issue refunds within 180 days and pay interest on the amounts returned.
The legislation prioritises refunds for small businesses and encourages larger importers and wholesalers to pass the money on to consumers. Wyden labelled Trump's tariffs an 'illegal tax scheme' that has harmed American families and businesses, adding that refunding the money is a 'crucial first step' to addressing the damage.
The bill is unlikely to pass but signals Democrats' strategy to pressure the Trump administration ahead of the midterm elections. The White House has argued that any refunds must be determined by ongoing litigation, with Treasury Secretary Scott Bessent stating that the administration would await a court ruling rather than act unilaterally.
Trump defended the tariffs under the 1977 International Emergency Economic Powers Act, claiming they helped end conflicts and generate revenue. He suggested the refund process could take years, saying 'it has to get litigated for the next two years' and later amending that to five years.
The University of Pennsylvania's Penn Wharton budget model estimated the refunds at $175bn, equivalent to $1,300 per US household, though calculating precise reimbursements is complex due to how tariff costs passed through the economy.
