September 8, 2025

Bessent warns up to $1 trillion refund risk if Supreme Court strikes Trump's tariffs

Bessent admits half of trade war funding is legally doomed

Treasury Secretary Scott Bessent warned on Sept. 7, 2025 that the Treasury could face $750 billion to $1 trillion in tariff refunds if the Supreme Court rules the tariffs illegal.

The U.S. Court of Appeals (Federal Circuit) issued a 7-4 decision on Aug. 29, 2025 that found most challenged tariffs exceeded IEEPA authority.

The administration has kept the disputed tariffs in place while it appeals, and Treasury officials say delaying a final decision until mid-2026 could increase the amount collected and complicate any unwind.

Treasury Secretary Scott BessentScott Bessent warned on Sept. 7, 2025 that delaying a final Supreme Court ruling until June 2026 could let $750 billion to $1 trillion in tariffs be collected and complicate refunds.

The U.S. Court of Appeals (Federal Circuit) issued a 7-4 decision on Aug. 29, 2025 that found most of the challenged tariffs exceeded the International Emergency Economic Powers Act authority.

Courts have kept the tariffs in place while appeals proceed, so Customs continued collecting disputed duties during the appeal period.

📜Constitutional Law💰Economy📈Trade

People, bills, and sources

Scott Bessent

Scott Bessent

Treasury Secretary

U.S. Court of Appeals for the Federal Circuit

Appellate court

What You Can Do

1

civic action

Ask the Supreme Court to expedite review

The Federal Circuit left the tariffs in effect while appeal timelines run. Public input can urge a faster SCOTUS schedule to reduce collection uncertainty.

2

civic action

Ask your representative to clarify presidential tariff authority

Congress can clarify whether IEEPA or other statutes authorize tariff-setting powers to avoid future executive-legislative conflicts.

3

understanding

Press Treasury for contingency planning

Request Treasury publish scenarios showing fiscal and cash-flow steps for refunds of $750 billion to $1 trillion.