Senate Democrats are telling the Trump administration to stop “stonewalling” and refund money collected under a tariff structure the Supreme Court deemed illegal.
Senate Minority Leader Charles E. Schumer of New York led two dozen Democrats in making the demand.
“The American people — small business owners, importers, manufacturers, and the consumers who ultimately bore the cost of these illegal taxes — deserve better than this stonewalling,” the senators wrote Friday to Treasury Secretary Scott Bessent. “This money does not belong to the federal government. It belongs to the businesses and individuals you illegally taxed.”
The letter indicates that Democrats see the push for refunds as a political winner following a Supreme Court ruling that said Mr. Trump usurped Congress’s taxing power by invoking the International Emergency Economic Powers Act to impose blanket levies on goods from individual nations.
Mr. Trump said the ruling amounted to a defeat for the American people, as he used tariffs as leverage to secure foreign investment in American manufacturing.
Democrats said the tariffs were a tax increase on businesses that had to pay the duties on imported goods to U.S. customs. In some cases, businesses passed the cost to consumers through higher prices.
Mr. Trump and Mr. Bessent are in no rush to deliver refunds, saying the justices offered little guidance and the matter will be litigated for months in a lower court.
Senators addressed Mr. Bessent in blunt terms, calling his comments about refunds “unacceptable” and demanding swift action.
“You need to give the people their money back,” the Democrats wrote.
Trade lawyers estimate that nearly 2,000 businesses filed lawsuits to secure refunds of money they paid to satisfy IEEPA tariffs.
For instance, Costco and Bumble Bee Foods filed suits even before the justices decided the case, while FedEx filed a complaint after the ruling.
Mr. Bessent, speaking on Fox News after the Supreme Court ruling, said payments to companies would be the “ultimate corporate welfare” since many entities took steps to pass along costs.
While companies seek repayment, Mr. Trump is rebuilding his tariff system.
He recently issued a new 10% global tariff under Section 122 of the Trade Act of 1974. He is working to raise that rate to 15%.
The authority is valid for 150 days unless renewed by Congress.
In the meantime, the administration is conducting investigations to issue additional tariffs under authorities that address national security concerns or unfair trade practices by trading partners.
“Congressional action will not be necessary,” Mr. Trump told lawmakers during his State of the Union Address late Tuesday. “It’s already time-tested and approved. And as time goes by, I believe the tariffs, paid for by foreign countries, will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love.”
