The U.S. Treasury is financially prepared to handle potential tariff refunds if the Supreme Court rules against Trump’s emergency tariffs, though repayments could take months, according to Treasury Secretary Scott Bessent.
In a recent interview, U.S. Treasury Secretary Scott Bessent stated that the Treasury has more than adequate funds to pay any tariff refunds ordered if the Supreme Court rules against President Donald Trump’s emergency tariffs. However, he noted that any repayments would be spread out over weeks or even a year.
Bessent expressed doubt that the court would rule against Trump’s tariffs but emphasized that any refunds would primarily benefit corporations that passed on added costs to their customers. He questioned whether companies like Costco, which is suing the U.S. government, would return the money to their clients.
“It won’t be a problem if we have to do it, but I can tell you that if it happens – which I don’t think it’s going to – it’s just a corporate boondoggle,” Bessent said.
Bessent also disputed the notion that Trump’s tariffs contributed to inflation, stating that goods inflation had been below headline inflation. He added that companies generally were not passing tariffs on to consumers, with “very, very little, if any, pass-through.”
The Supreme Court’s decision on the tariff case, which challenges Trump’s use of the International Emergency Economic Powers Act to impose broad tariffs on nearly every U.S. trading partner, remains pending. Importers and trade lawyers had anticipated a ruling on Friday, but the court issued a decision on a different matter instead.
Bessent believes that the longer the tariff decision is delayed, the more likely it is that the Supreme Court will rule in Trump’s favor. With cash on hand of nearly $774 billion as of Thursday, the Treasury has more than enough funds to cover any refunds.
“We’re not talking about the money all goes out in a day. Probably over weeks, months, may take over a year, right?” Bessent said.
The case has significant implications for U.S. trade policy and the broader economy. If the Supreme Court rules against the tariffs, it could set a precedent for future trade disputes and impact the financial health of companies that have been affected by the tariffs.
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