America will refund about ‘half the tariffs’ if SCOTUS rules Trump overstepped, Bessent says
U.S. Treasury Secretary Scott Bessent said Sunday that the Treasury Department would grant rebates if the Supreme Court upholds the ruling that President Donald Trump’s “reciprocal” tariffs are an overreach.
“We would have to refund about half of the tariffs, which would be terrible for the Treasury,” Bessent said during an appearance on NBC News’ “Meet the Press.”
“If the Court rules that we do, we’ll have to implement it.”
But there are “many other avenues” to impose the tariffs, even if they “would weaken President Trump’s negotiating position,” he added, without elaborating.
Appearing on CBS News’ “Face the Nation,” National Economic Council Director Kevin Hassett said there are “other legal authorities” to enforce the tariffs if the Supreme Court doesn’t rule in favor of the Trump administration. He suggested examining Section 232, which has been used to impose tariffs on steel and aluminum, among other options.
A federal appeals court ruled on August 29 that Trump’s “reciprocal” tariffs were among the tariffs that violated the president’s authority. It stated that the International Emergency Economic Powers Act (IEEPA) did not authorize the emergency tariffs Trump imposed earlier this year.
“We see no clear congressional authorization under the IEEPA for tariffs comparable in magnitude to the reciprocal tariffs and trade taxes,” the court said in its majority decision.
The Trump administration’s new round of “reciprocal” tariffs, which took effect in early August, will remain in effect after the court postponed its order until October 14.
The court’s decision raised questions about the Trump administration’s ability to continue trade negotiations. The Trump administration appealed the decision to the U.S. Supreme Court on Wednesday, warning of a “poor country” without tariffs.
Pesent said Sunday he was “confident” that the Trump administration would win before the Supreme Court.
But the impact of Trump’s economic policies could be felt gradually. The U.S. Bureau of Labor Statistics’ August employment report showed that the U.S. economy added about 22,000 jobs in August, and the unemployment rate reached 4.3%, its highest level in nearly four years.
The commodities sector is among the hardest hit. Joe Brusuelas, U.S. economist at RSM, wrote in a note to investors Friday that the tariff policy, and the erratic way it is being implemented, has had an “undeniable” impact on employment. Mr. Brusuelas pointed out that companies in the raw materials sector have recorded “four consecutive months of decline since May.”
“We can’t build factories in the blink of an eye,” Mr. Bessent said, adding, “We’re going to see construction and manufacturing jobs,” thanks in part to the passage of this “big, beautiful bill.”
The Trump administration has defended the idea that American companies should bear the additional cost of tariffs, denying that they constitute a tax on American consumers. However, companies such as Nike, Hasbro, and Walmart are among those warning that the tariffs will lead to higher prices, as the United States collects tariff revenue on imports.
According to the U.S. Treasury Department’s monthly statement, the United States collected approximately $28 billion in tariffs in July. In April, the Department reported collecting $16.8 billion in total tariffs.
In June, the Department of Homeland Security announced that U.S. Customs and Border Protection had collected $81.5 billion in tariffs imposed by Trump.
