U.S. Treasury Secretary Scott Bessent provided assurances that the Treasury Department currently holds adequate funds to fulfill any necessary repayments should the Supreme Court determine that President Donald Trump’s emergency tariffs were unlawfully imposed. The tariffs, often referred to as "Liberation Day" tariffs, have become the focal point of ongoing legal scrutiny concerning the president’s authority under the International Emergency Economic Powers Act (IEEPA).
In a conversation with Reuters, Bessent detailed that the Treasury's cash reserves, totaling approximately $774 billion as of Thursday, are more than sufficient to cover any resultant refunds following a Supreme Court decision. He highlighted that disbursement of these repayments could occur incrementally, potentially spanning several weeks or even extending to a full year.
The controversy centers on President Trump’s justification for the tariffs, which he imposed by citing the nation's trade deficit as a justification for declaring a national emergency. The tariffs were presented as a "reciprocal" measure against goods imported from nearly every major foreign trading partner of the United States.
Secretary Bessent expressed some skepticism regarding the likelihood that the Supreme Court would rule against the tariffs. He reasoned that if refunds became necessary, they would predominantly benefit corporations that had initially absorbed the additional costs before transferring those costs onward to consumers. Additionally, he remarked on the possibility that the court’s ruling might not present a binary verdict, potentially complicating the process for issuing tariff refunds.
President Trump has also communicated his views on the matter via social media platform Truth Social, warning that a Supreme Court decision overturning these tariffs could have dire implications for the country, going as far as suggesting it could "literally destroy" the United States.
As of now, the Supreme Court has not delivered a ruling on the validity of the global tariffs. Traders speculate that there is approximately a 75% probability that the court will uphold the tariffs, but the timing of the ruling remains undetermined. Expectations are set for a decision to be announced by the Supreme Court on Wednesday.
Bessent also indicated that any delay in the court’s ruling could potentially raise the chances of a favorable outcome for the tariffs. This ongoing legal tension underscores the complexity and stakes involved in the case, which blends legal authority, trade policy, and economic considerations.