U.S. Treasury Stands Ready for Possible Tariff Refunds Amid Legal Uncertainty

U.S. Treasury Secretary Scott Bessent assures that funds are available for tariff refunds if the Supreme Court rules against Trump’s tariffs. Bessent predicts that any refunds would benefit corporations that previously pushed costs to customers. The ruling remains pending, with uncertainties about the final decision's simplicity and implications.

The U.S. Treasury is well-prepared to handle potential tariff refunds should the Supreme Court decide against President Donald Trump's emergency tariffs, according to Treasury Secretary Scott Bessent. Despite doubting a negative ruling, Bessent anticipates that any refunds would largely benefit corporations that have transferred costs to their clients. He labels such eventualities as a corporate boondoggle, questioning if companies like Costco, which is suing the U.S. government, would pass refunds back to customers.

Bessent argues that companies have not widely passed tariffs onto consumers and insists that Trump's tariffs did not contribute significantly to inflation. With cash on hand exceeding $774 billion, the Treasury is financially prepared, even though any refunds would be dispensed over time rather than immediately. The Supreme Court, which was expected to rule soon, postponed its decision, leaving uncertainty around Trump's use of the International Emergency Economic Powers Act to impose widespread tariffs.

Bessent remains optimistic, suggesting that a delay in the court's decision might favor Trump's stance. Meanwhile, Treasury forecasts indicate plans for deficit reduction and increased financial capacity, ensuring readiness for any required refunds. Estimates suggest affected tariffs might approach $150 billion, though Bessent disputes this figure, citing revenues under different legal frameworks.

(With inputs from agencies.)