Treasury Secretary Scott Bessent stated that any refunds from tariffs struck down by the Supreme Court would amount to “ultimate corporate welfare,” suggesting he sees little benefit flowing to American consumers.
Bessent’s comments came hours after the high court’s ruling, which left unanswered the question of what happens to money already collected. He indicated that litigation over refunds could turn into a process lasting months or even years, and described the potential situation as “a mess.”
Speaking during a news interview, Bessent suggested that companies could be the ones to benefit. He cited a scenario where a foreign supplier cuts its price for an American importer due to the tariffs. The importer would pay the tariff but might keep the product’s final price unchanged, meaning a refund could primarily benefit the firm’s bottom line.
Bessent said the amount of revenue affected by the Supreme Court’s decision would be closer to $130 billion than some estimates that reached up to $175 billion. The court had ruled that the President could not impose tariffs using a specific law called the International Emergency Economic Powers Act.
However, the administration signaled it would re-impose most of the tariffs using other legal authorities. Bessent, in prepared remarks earlier that day, stated that revenue collected from tariffs would be “virtually unchanged” in 2026 despite the ruling, thanks to the administration’s backup plan involving other sections of trade law.
The Treasury chief also called on U.S. trading partners that had already reached agreements based on the previous tariffs to honor those deals. He expressed confidence that “everyone is going to honor their deal.”
Additionally, Bessent noted that the Supreme Court had reaffirmed the president’s right to a “complete embargo,” which he described as a “draconian alternative” for other nations should they not cooperate.
