Senate Democrats Unveil Bill Seeking Tariff Refunds After Supreme Court Ruling

Senate Democrats introduced a bill on Feb. 23 seeking tariff refunds after the Supreme Court struck down many of President Donald Trump’s tariffs, with justices stating they violated an emergency powers law he invoked last year.

The bill, sponsored by 22 Senate Democrats led by Sens. Ron Wyden (D-Ore.), Edward Markey (D-Mass.), and Jeanne Shaheen (D-N.H.), would require U.S. Customs and Border Protection (CBP) to issue refunds over the course of 180 days and pay interest on the refunded amount.

Under the proposed legislation, CBP would give priority to small businesses when processing refunds and coordinate with the Small Business Administration to provide information about their refunds.

The bill would also require CBP to update congressional committees every 30 days on the status of refunds until all payments are completed, and direct the agency to issue guidance on how to address duty drawback claims.

“Trump’s illegal tax scheme has already done lasting damage to American families, small businesses and manufacturers who have been hammered by wave after wave of new Trump tariffs,” Wyden said in a statement.

“Senate Democrats will continue fighting to rein in Donald Trump’s price-hiking trade and economic policies. A crucial first step is helping people who need it most, by putting money back in the pockets of small businesses and manufacturers as soon as possible.”

According to the senators, tariffs implemented under the International Emergency Economic Powers Act (IEEPA) brought in about $175 billion in revenue. Trump has said the tariffs were intended to tackle trade deficits and counter unfair trade practices.

Writing for the 6–3 majority on Feb. 20, Supreme Court Chief Justice John Roberts said that the IEEPA’s phrasing does not clearly authorize tariffs.

Sen. Alex Padilla (D-Calif.), who co-sponsored the refund bill, said the tariffs drove up costs on groceries, energy bills, and other essentials, and disrupted the country’s supply chains.

“We must ensure that hardworking Americans and small businesses who have footed the bill for Trump’s disastrous economic agenda immediately get their money back,” Padilla said in a Feb. 23 statement.

In an emailed statement to The Epoch Times, White House spokesman Kush Desai defended Trump’s tariff measures and criticized Democrats for undermining the effort.

“Democrats spent decades talking about lopsided ‘free’ trade deals, reshoring middle-class manufacturing jobs, and lowering prescription drug prices,” Desai said.

“President Trump used tariffs to actually deliver where Democrats could only talk, so naturally Democrats are rolling up their sleeves to undermine President Trump and the American people—pathetic but unsurprising.”

During a Feb. 20 press conference following the Supreme Court’s decision, Trump said the ruling didn’t do enough to address the refund issue, which could tie up the federal government in court for years to come.

Shipping giant FedEx filed a lawsuit in the U.S. Court of International Trade on Feb. 23 to seek a full refund of payments made under Trump’s tariffs following the Supreme Court ruling.

Other companies that filed lawsuits seeking refunds on the tariffs include Revlon, Costco, Goodyear Tire & Rubber, Toyota, BYD, Patagonia, REI, Trek, Specialized, Shimano, Bell Sports, Osprey, and Dole Fresh Fruit Company.

Jill McLaughlin and Matthew Vadum contributed to this report.