By Anjali Sharma
WASHINGTON – US Treasury Secretary Scott Bessent on Monday has acknowledged that the US government will be required to issue refunds if the Supreme Court upholds a ruling against President Donald Trump’s “reciprocal” tariffs.
“We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” Bessent said. “There’s no ‘be prepared’if the Court says it, we’d have to do it.”
Bessent was asked whether the administration was prepared to offer rebates on the tariffs if the Supreme Court ruled against them.
Bessent said the US “would have to give a refund on about half the tariffs,” added that it “would be terrible for the Treasury.”
“There’s no ‘be prepared,’” he said. “If the court says it, we’d have to do it.”
President Trump has moved a petition to the Supreme Court to intervene in the escalating legal battle over his emergency tariffs.
The appeal seeks to reverse a federal court ruling that found the administration acted unlawfully in imposing wide-ranging import taxes on dozens of trading partners.
Trump has argued that the case is a defining test of presidential authority and a matter of national economic security.
The legal fight stems from a 7–4 decision by the U.S. Court of Appeals for the Federal Circuit, which upheld a lower court ruling that struck down the bulk of Trump’s tariffs.
The court ruled that the President cannot invoke emergency powers to impose such broad levies under the statute he cited. The ruling, however, has been stayed until October 14 to allow time for the administration’s appeal to the Supreme Court.
Trump has warned of dire consequences, said the country would be on “the brink of economic catastrophe” if the Supreme Court does not uphold the legality of the tariffs.
Secretary Bessent expressed confidence that the administration would prevail at the conservative-leaning Supreme Court. Still, he acknowledged that a loss would be costly. despite the legal setback.
“I am confident that we will win at the Supreme Court,” Bessent said.
US businesses have paid over $210 billion as of August 24 to cover tariffs deemed illegal by US courts. If the Supreme Court upholds the decision, the US Treasury could be required to return the collected tariff revenue, according to reports.
President Trump is the first US president to attempt to impose tariffs by invoking the International Emergency Economic Powers Act
He cited the emergency law in February to impose steep levies on Canada, China, and Mexico, pointing to the fentanyl crisis.
He also declared a national emergency in April, arguing that a trade imbalance had harmed domestic manufacturing and posed a threat to national security.
Treasury Secretary Scott Bessent warned that suspending the administration’s tariffs would “lead to dangerous diplomatic embarrassment,” disrupt ongoing negotiations, and risk retaliation from other countries.
