US Treasury Faces $1 Trillion in Refunds if Supreme Court Voids Trump Tariffs

The U.S. Treasury could be forced to issue refunds of between $750 billion and $1 trillion to businesses if the Supreme Court rules against President Donald Trump’s tariff plan, according to Treasury Secretary Scott Bessent. The warning highlights the significant fiscal stakes of a legal battle that could unwind one of the administration's core economic policies.

The administration has urgently requested an expedited Supreme Court hearing after a federal appeals court found that many of the president’s “reciprocal tariffs” were illegal. In the , Bessent expressed confidence that the administration would ultimately prevail but acknowledged the severe consequences of a negative ruling. "If the tariffs are struck down, we would have to give a refund on about half the tariffs, which would be terrible for the Treasury," he stated.

The case centers on whether President Trump overstepped his executive authority in imposing wide-ranging levies on imports. A ruling against the administration would deliver a massive and unprecedented windfall to companies that have paid the duties for years. To avoid prolonged uncertainty and the accumulation of further liabilities, the White House is pushing the court to hear arguments in November and issue a decision shortly thereafter.

While confident in their legal position, officials are also preparing contingency plans. National Economic Council Director Kevin Hassett mentioned that the administration could turn to other legal authorities to maintain its protectionist stance. These alternatives might include implementing tariffs through , which allows for levies on national security grounds, or imposing new sector-specific duties on industries like semiconductors and pharmaceuticals. The outcome of the remains one of the most significant variables for the U.S. economic outlook.