Compass Investments

U.S. Treasury Department chief Scott Bessent is avoiding a straight answer about the likelihood of reversing $134 billion collected through tariffs after the Supreme Court struck down most of the sweeping duties imposed by Donald Trump’s administration.

On CNN’s “State of the Union” with Dana Bash, Bessent was asked: “Is there going to be a refund of about $134 billion dollars collected in these emergency tariffs?” However, Bessent said that’s not the crux of the matter, arguing that the Supreme Court’s verdict is a narrow interpretation of presidential powers.

Bessent emphasized that the court’s ruling pertains to the application of powers under the International Emergency Economic Powers Act (IEEPA), but the administration retains other tariff rights, such as those under Sections 232 and 301. He pointed out that the court did not directly address the restitution issue, the case has been sent back to the trial court, and a final verdict could come in a few weeks or months.

In response to Dana Bash’s reminder that the federal government had previously been obliged to refund fees if they were found to be “unlawful, Bessent noted that it was not the prerogative of the executive branch to decide whether to refund them. “It’s not an executive decision, it’s a lower court verdict, Bessent concluded, emphasizing that the responsibility lies with the judiciary.