Senate Democrats Push for Refunds of Overturned Trump Tariffs

Twenty-two Senate Democrats have proposed legislation requiring the Trump administration to return all revenue from tariffs recently struck down by the Supreme Court within 180 days. The bill would prioritize small businesses for refunds and could affect over $175 billion in collected tariff revenue.

Twenty-two Democratic senators filed legislation Monday demanding the Trump administration return all money collected from tariffs recently overturned by the Supreme Court, plus interest, within six months.

The proposed bill would direct U.S. Customs and Border Protection, which handles tariff collection at ports nationwide, to give priority treatment to small businesses seeking refunds.

Last Friday, the Supreme Court invalidated Trump’s sweeping tariffs that were imposed using the International Emergency Economic Powers Act, but the justices provided no guidance on refunds. Instead, they sent the matter back to a lower trade court for further proceedings.

The Democratic proposal would mandate CBP return all unlawfully collected IEEPA tariffs with interest, including those already finalized through the agency’s liquidation process.

Senate Minority Leader Chuck Schumer joined 21 other Democrats in sponsoring the measure, including key committee leaders Ron Wyden of Oregon, Edward Markey of Massachusetts, and Jeanne Shaheen of New Hampshire from the Finance, Small Business, and Foreign Relations committees.

“Senate Democrats will continue fighting to rein in Donald Trump’s price-hiking trade and economic policies,” Wyden stated. “A crucial first step is helping people who need it most, by putting money back into the pockets of small businesses and manufacturers as soon as possible.”

Republican Senate Majority Leader John Thune’s office from South Dakota refused to say whether the Democratic bill would receive floor consideration.

Since the legislation was just filed and must undergo committee review, any decision on moving forward remains distant.

House Speaker Mike Johnson indicated the Republican-controlled chamber would avoid the tariff refund issue entirely.

“The White House is going to sort that out, and we have to give them the time and space to do it. This is an unprecedented event, of course, so there’s no playbook to follow,” the Louisiana Republican told reporters. “I think they’ve (the White House) got good arguments on their side, and we’ll see how it shakes out. That’s not something that really involves the House at this point.”

The White House has not yet responded to requests for comment about the proposed legislation.

Treasury Secretary Scott Bessent said Sunday the administration would await lower court decisions on refunds. “We will follow what they decide, but it can take weeks or months until we hear from them,” Bessent told CNN.

CBP must stop collecting the IEEPA tariffs beginning Tuesday at 12:01 a.m. Eastern time.

According to Penn-Wharton Budget Model economists, the Supreme Court ruling potentially affects more than $175 billion in IEEPA tariff collections. Their analysis showed these tariffs were bringing in over $500 million daily in gross revenue.