A recent announcement made by the Supreme Court came as a major setback to President Donald Trump and his administration.
In a 6–3 decision, the court ruled that the emergency tariffs were illegal. As a result, the Trump administration may be required to refund more than $175 billion to United States importers, who paid these tariffs over the past year. Following the ruling, Trump said that the refunds could take time.
“I guess it has to get litigated over for the next two years,” he said during a press conference.
Meanwhile, lawmakers are increasing pressure on the administration to issue tariff refunds to American businesses and consumers, who carried much of the financial burden from these tariffs.
American businesses paid most of the more than $130 billion collected through the tariffs, which the United States Customs and Border Protection (CBP) billed. Customers indirectly paid these taxes as companies passed these costs to consumers by raising prices.
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Several Democrats, including Illinois Governor JB Pritzker and California Governor Gavin Newsom, have demanded refunds for families and businesses. They argue that the federal government should include the American people on its “IOU” list.
A group of 28 Democratic Senate members has introduced a new bill called the Tariff Refund Act, which would require CBP to return tariff payments collected under Trump’s trade policies.
The bill prioritizes small businesses that were affected by these taxes. The supporters of the bill say households should receive $1,700 in refunds. The amount covers the average cost citizens have paid linked to an increase in prices.
Senator Elizabeth Warren promoted the act in a video released on Thursday, March 5. She stated that businesses in her state reported higher operating costs due to tariffs, which forced them to raise prices.
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“Companies ranging from board game makers to baby stroller manufacturers told me tariffs increased their costs,” Warren said, adding, “The truth is that Americans ended up paying for these policies.”
Research from the Federal Reserve Bank of New York found that American companies and consumers absorbed nearly 90 percent of the tariff costs through late 2025.
While there is still uncertainty about how refunds would be given back to businesses, lawmakers claimed that citizens reportedly paid the bulk of the tariffs despite higher prices, and that they should receive the compensation.
The administration has requested a 90-day delay from a federal appeals court to issue refunds, stating that lawmakers need time to develop solutions. However, lower courts have rejected this request and called for clarity.
Despite the verdict, Politico reported that the administration later introduced new global tariffs of 15 percent. Officials are reportedly considering ways for the government to retain its tariff revenue.
New York Governor Kathy Hochul sent a letter to United States Treasury Secretary Scott Bessent on March 5, requesting that the federal government “refund all tariff payments to New Yorkers.” Many companies have already filed lawsuits seeking refunds from the federal government, including Costco, FedEx and L’Oréal.
