Trump admin says refund process may take a long time: Politico
TL;DR
The Trump administration warns that refunds for tariffs ruled unlawful by the Supreme Court could take weeks to years due to litigation and administrative hurdles, despite pressure from Democrats to expedite the process.
Trump admin says refund process may take a long time: Politico
Trump Administration Faces Pressure to Expedite Refunds for Invalidated Tariffs
The Trump administration has faced mounting scrutiny over its handling of refunds for tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which the U.S. Supreme Court recently ruled unlawful. Senate Democrats, led by Minority Leader Chuck Schumer, have demanded that the Treasury Department disburse refunds within 90 days, arguing that the $100–$175 billion in collected tariffs "belongs to the federal government." However, Treasury Secretary Scott Bessent has indicated the process could take "weeks, months, years" due to ongoing litigation and administrative complexities.
The Supreme Court's 6-3 decision in Learning Resources Inc. v. Trump (2026) held that President Trump exceeded his authority under IEEPA to impose the tariffs, which critics say inflated costs for consumers and businesses. While the ruling did not specify a refund mechanism, the U.S. Court of International Trade (CIT) is expected to oversee related litigation. As of February 26, over 2,000 cases had been filed by companies seeking refunds, with plaintiffs urging expedited processing to establish a "template" for broader payouts. The Department of Justice (DOJ) faces a critical deadline to respond to one such case by February 27, though it has yet to act.
Lawmakers have criticized the administration's delays, calling them "stonewalling" and warning of further legislative action if refunds are not prioritized. Bessent's recent remarks—that refunds might instead become "corporate welfare" or face prolonged legal battles—have drawn sharp rebukes from Democrats, who argue that small businesses and consumers deserve swift relief.
Trade experts confirm that importers who paid the invalidated tariffs are entitled to refunds, but the process remains uncertain. Pratik Shah, an attorney involved in the Supreme Court case, noted that "the only question is the process". With FedEx and other companies now joining refund lawsuits, stakeholders await clarity on how the administration will balance legal challenges, refund distribution, and economic stability.
As the debate intensifies, the administration's next steps will likely shape both short-term market confidence and long-term trade policy frameworks.
