High Stakes at the Supreme Court: $175 Billion in Tariffs in Question

Over $175 billion in U.S. tariff collections could be refunded if the Supreme Court rules against President Trump's emergency tariffs. The Penn-Wharton Budget Model estimates the potential refunds, which may impact U.S. customs receipts and Treasury plans. A ruling could alter the landscape of these tariffs.

More than $175 billion in U.S. tariff collections might be returned if the U.S. Supreme Court overturns President Donald Trump's emergency tariffs, according to economists from the Penn-Wharton Budget Model.

The calculations, requested by Reuters, were derived using a comprehensive forecasting model that tracks tariff rates by product and country, particularly those imposed under the International Emergency Economic Powers Act (IEEPA), explained Lysle Boller, a senior economist at the University of Pennsylvania.

With a potential ruling as early as Friday, importers could demand refunds from the U.S. Customs and Border Protection agency for duties paid over the past year. Although Trump's tariffs have generated significant revenue, estimates suggest over $175 billion might necessitate refunds if the court challenges the legality of these tariffs.

(With inputs from agencies.)