Congressional Democrats seek to force refunds

A group of Senate Democrats introduced legislation Monday that would require refunds of tariffs paid under President Donald Trump’s high mandates, which the Supreme Court struck down on Friday.

The legislation, led by Sens. Ron Wyden of Oregon, Jeanne Shaheen of New Hampshire and Ed Markey of Massachusetts, follows the Supreme Court’s landmark 6-3 decision Friday challenging the majority of Trump’s tariffs.

“Trump’s illegal tax plan has already done lasting damage to American families, small businesses and manufacturers, who have been hit by the new wave of Trump tariffs,” Wyden, the top Democrat on the Senate Finance Committee, said in a statement. he said.

“Senate Democrats will continue to fight to rein in Donald Trump’s price-raising trade and economic policies. An important first step is to help the people who need it most by putting money back into the pockets of small businesses and manufacturers as quickly as possible,” he said.

The US government could face refunds of more than $175 billion to importers. Penn Wharton Budget Modelproduced on request Reuters news wire service.

Majority Supreme Court opinion There was no direct reference to tariff rebates on Friday. In his dissenting opinion, Justice Brett Kavanaugh cited oral arguments that the refund process would likely be a “mess.”

“The United States may be required to refund billions of dollars to importers who paid IEEPA tariffs, even if some importers passed the costs on to consumers or others,” Kavanaugh wrote. International Emergency Economic Powers ActThe 1977 law that the president used the previous year to impose sweeping tariffs without Congressional authorization.

Treasury Secretary Scott Bessent said in an interview with Fox News on Friday that the refunds would be a logistical nightmare.

“This could take years to litigate and get paid,” he said. “If there is a payout, it seems like it would be the ultimate corporate welfare. What do you know, a Chinese supplier lowered their price? Did they lower their price because of the tariff? The product came to the United States. They paid the same price, but they will get a refund on the tariff.”

House Democrats are also trying to mandate refunds.

Rep. Steven Horsford, D-Nev., on Friday. introduced a bill There is a similar goal in the Parliament. Democrats are tackling the unpopular issue even within the ranks of the Congressional GOP ahead of closely watched midterm elections. But neither proposal has a clear path to passage with Republican majorities in both chambers and the White House’s steadfast commitment to tariffs.

The Senate bill would require Customs and Border Protection to pay rebates for all tariffs imposed using Trump’s new reading of IEEPA.

CBP will have 180 days after enactment to process all refunds with interest and prioritize payments to small businesses where possible. It also directs importers, wholesalers and large companies to pass these refunds on to their customers.

“President Trump’s reckless and chaotic tariffs have only caused uncertainty and pain, raising prices when consumers and businesses can least afford them,” Shaheen, the top Democrat on the Senate Foreign Relations Committee, said in a statement. he said. “Now that the Supreme Court has made clear that the President does not have the authority to unilaterally impose sweeping emergency tariffs, it is critical that American families and small businesses get the help they need.”