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As Supreme Court Tariff Ruling Nears, Trump Warns of Massive Refund Exposure

The case tests the president’s use of IEEPA for economy‑wide duties with potential refund obligations for importers.

Overview

  • The Supreme Court could issue a decision as soon as Wednesday on whether IEEPA authorizes the administration’s broad reciprocal tariffs.
  • During November arguments, several justices signaled skepticism, with Chief Justice John Roberts noting the policy’s effect was the imposition of taxes on Americans.
  • Lower courts have already struck down most IEEPA‑based tariffs in suits brought by businesses and 12 state attorneys general, who argue such levies are taxes reserved to Congress.
  • Government data show roughly $200 billion in additional tariff revenue in 2025, including about $133.5 billion tied to IEEPA measures, raising complex questions about who would be repaid and when if they are invalidated.
  • Trump said refunds could run into many hundreds of billions of dollars and even trillions when investments are counted, while Treasury Secretary Scott Bessent said repayments could be managed over time and the administration is preparing fallback options under other trade laws or through Congress.