Three Senate Democrats have introduced legislation requiring the US government to refund approximately $175 billion in tariffs collected under an illegal order by Donald Trump, as ruled by the Supreme Court last week. The bill, sponsored by Senators Ron Wyden, Ed Markey, and Jeanne Shaheen, would compel Customs and Border Protection to issue refunds within 180 days and pay interest on the amounts.
The measure prioritises small businesses and encourages importers and large companies to pass refunds on to consumers. Wyden called the tariffs a 'crucial first step' to repairing damage to families and manufacturers. However, the bill is unlikely to pass, serving instead to pressure the Trump administration, which has shown little interest in returning the revenues.
Democrats are framing the issue ahead of November's midterm elections, arguing that Trump illegally raised taxes and now refuses repayment. Shaheen stressed that refunds must start with Trump returning 'illegally collected tariff taxes', while Markey noted the process is particularly burdensome for small firms with limited resources.
The administration claims its hands are tied, with Treasury Secretary Scott Bessent stating refunds are a matter for the courts. Trump has defended the tariffs under the 1977 International Emergency Economic Powers Act, but the Penn Wharton budget model estimates refunds would average $1,300 per US household. Trump has suggested litigation could take years, saying 'we'll end up being in court for the next five years'.
