US will refund ‘half the tariffs’ if SCOTUS rules Trump overstepped, says Bessent

The US Treasury Department is cagey about the Supreme Court’s pending order on appeals against the ruling of a federal court that found President Donald Trump lacked the authority to levy sweeping tariffs under the 1977 International Emergency Economic Powers Act (IEEPA), and Secretary Scott Bessent said on Sunday that the treasury will issue rebates if the Supreme Court upholds the ruling that Trump’s “reciprocal” tariffs were an overstepping of power. “We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” Bessent said during an appearance on NBC News’ “Meet the Press.”

“If the court says it, we’d have to do it,” he added.

But there are “numerous other avenues” that can be taken on tariffs, though they would “diminish President Trump’s negotiating position,” Bessent said, without citing details.

However, Bessent said he is “confident” the Trump administration will win at the Supreme Court.

The remarks came after a federal appeals court last month ruled Trump overstepped presidential powers by imposing hefty duties.

‘There are other legal authorities to implement tariffs’

Earlier, during an appearance on CBS News’ “Face the Nation,” National Economic Council Director Kevin Hassett said there are “other legal authorities” to implement tariffs if the Supreme Court does not rule in favour of the Trump administration. He suggested “Section 232” investigations, which were used to implement steel and aluminum tariffs, among other options.

Trump used the IEEPA to impose steep levies on trading partners after declaring a national emergency in April and arguing that trade imbalance had harmed domestic manufacturing and posed a threat to national security.

‘IEEPA does not authorise emergency tariffs Trump imposed’: Federal court

A federal appeals court ruled on August 29 that Trump’s “reciprocal” tariffs were among the imposed duties that breach the president’s authority, saying that the International Emergency Economic Powers Act (IEEPA) does not authorise the emergency tariffs Trump imposed earlier this year.

“We discern no clear congressional authorisation by IEEPA for tariffs of the magnitude of the Reciprocal Tariffs and Trafficking Tariffs,” the court said in its majority ruling. The appeals court nevertheless paused its ruling from taking effect until October 14, giving Trump time to appeal to the Supreme Court.

The Trump administration appealed the ruling on Wednesday, warning of a “poor nation” without tariffs.

However, the impact of Trump’s policies may slowly be revealing itself, as the Bureau of Labor Statistics’ August jobs report indicated that the unemployment rate ticked up to 4.3%—the highest in nearly four years.

WATCH: US Jobless Rate Climbs to Near Pandemic Level Highs

Companies warn tariffs would lead to price increases

The Trump administration has touted that American companies should “eat” the additional costs of tariffs, in a denial that such duties are a tax on American consumers. But companies like Nike, Hasbro, and Walmart have warned that tariffs would lead to price increases.

The US collected roughly $28 billion in customs duties in July, according to the Treasury Department’s monthly statement.

In June, the Department of Homeland Security said US Customs and Border Protection collected $81.5 billion from Trump’s tariffs.