E-Paper
'Will have to refund...': What US Treasury Secretary said after Trump admin moves SC over 'illegal' ruling
A federal appeals court ruled on 29 August that Trump’s tariffs exceeded presidential authority, saying IEEPA did not authorise tariffs of this scale.
US treasury secretary Scott Bessent has said the government may have to refund billions in tariffs if legal challenges to President Donald Trump’s “reciprocal” trade duties succeed, calling it “terrible for the treasury.”
“We would have to give a refund on about half the tariffs, which would be terrible for the Treasury. If the court says it, we’d have to do it,” he told NBC News’ Meet the Press.
Bessent added there are “numerous other avenues” to impose tariffs, though these could “diminish President Trump’s negotiating position.”
National Economic Council Director Kevin Hassett said on CBS News’ Face the Nation that other legal options exist, such as “Section 232” investigations previously used for steel and aluminium duties.
A federal appeals court ruled on 29 August that Trump’s tariffs exceeded presidential authority, saying the International Emergency Economic Powers Act (IEEPA) did not authorise tariffs of this scale.
The court said, “We discern no clear congressional authorisation by IEEPA for tariffs of the magnitude of the Reciprocal Tariffs and Trafficking Tariffs.”
The new tariffs, introduced in early August, will remain in place until 14 October, after the court delayed enforcement of its order. Bessent expressed confidence in a favourable Supreme Court outcome.
The economic impact of the tariffs is already visible. The Bureau of Labor Statistics reported 22,000 new jobs in August, while unemployment rose to 4.3 per cent, its highest level in nearly four years, CNN reported.
Goods-producing sectors have been hardest hit. RSM US economist Joe Brusuelas said the tariff policy had an “undeniable” effect on hiring, with goods businesses seeing “four straight months of declines since May.” Bessent said the “One Big Beautiful Bill” will help create “construction jobs and manufacturing jobs.”
The administration has said companies should absorb the costs of tariffs, denying they act as a tax on consumers. However, Nike, Hasbro, and Walmart have warned tariffs could raise prices.
In July, the US collected roughly $28 billion in customs duties. In April, gross customs duties were $16.8 billion, and in June, US Customs and Border Protection reported $81.5 billion collected from Trump’s tariffs.
