$175B Tariff Refund Unlikely to Reach Consumers, Former Commerce Secretary Warns
Treasury Secretary Scott Bessent believes $175 billion in tariffs collected under a scheme now ruled illegal by the Supreme Court will never be refunded to American consumers, according to Wilbur Ross, who served as Commerce Secretary in Trump's first administration.
The Supreme Court last month ruled that President Trump could not use the International Emergency Economic Powers Act to levy duties on trading partners, directing revenues to be contested in international trading courts. Ross, 88, warned that refund cases will drag on for years before potentially returning to the Supreme Court, leaving consumers as the ultimate losers.
While importers initially absorbed tariff costs, much of that burden likely passed through to consumers via wholesalers and retailers. The Yale Budget Lab estimates tariff costs were passed to consumers at rates of 40–76% for core goods and 47–106% for durables, according to the source material.
Ross said establishing which businesses qualify for refunds would be "fiendishly complicated" for courts to determine. Multiple cases from importers seeking to recover duties paid last year are already pending.
Responses (0 )