After Supreme Court rebuke, Democrats call for government to refund billions in Trump tariff money

WASHINGTON — A trio of Senate Democrats is calling for the government to start refunding roughly $175 billion in tariff revenues that the Supreme Court ruled were collected because of an illegal set of orders by President Donald Trump.

U.S. Sens. Ron Wyden of Oregon, Ed Markey of Massachusetts and Jeanne Shaheen of New Hampshire are unveiling a bill on Monday that would require U.S. Customs and Border Protection to issue refunds over the course of 180 days and pay interest on the refunded amount.

Maryland Sens. Chris Van Hollen and Angela Alsobrooks are among the 19 cosponsors, according to a news release from Senate Democrats.

The measure would prioritize refunds to small businesses and encourages importers, wholesalers and large companies to pass the refunds on to their customers.

“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,” said Wyden, stressing that the “crucial first step” to fixing the problem begins with “putting money back in the pockets of small businesses and manufacturers as soon as possible.”

The bill is unlikely to become law, but it reveals how Democrats are starting to apply public pressure on a Trump administration that has shown little interest in trying to return tariff revenues after the Supreme Court announced its 6-3 ruling on Friday.

Because of the ruling, going into November’s midterm elections for control of Congress, Democrats have begun telling the public that Trump illegally raised taxes and now refuses to pay the money back to the American people.

U.S. stocks slumped Monday after Trump ramped up his newest tariffs, while investors continued to punish companies that could be losers in the artificial-intelligence revolution.

The S&P 500 fell 1% after Trump said on Saturday that he would place temporary 15% tariffs on other countries. That’s up from the 10% rate he announced Friday following a Supreme Court ruling that struck down his sweeping “reciprocal” taxes on imports from around the world.

The Dow Jones Industrial Average dropped 821 points, or 1.7%, and the Nasdaq composite sank 1.1%.

When the high court struck down many of Trump’s sweeping tariffs Friday, it opened the door for companies to seek substantial refunds from the federal government for trade levies already paid.

Over 1,000 companies have lined up for reimbursement in recent months, including Harford County-based Chesapeake Spice Company.

Shaheen said that repairing any of the damage caused by the tariffs in the form of higher prices starts with “President Trump refunding the illegally collected tariff taxes that Americans were forced to pay.” Markey stressed that small businesses tend to have ”little to no resources” and a “refund process can be extremely difficult and time consuming” for companies.

The Trump administration has asserted that its hands are tied because any refunds should be the responsibility of further litigation in court.

Asked if Trump thought Congress should play a role in providing refunds, White House spokesman Kush 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.”

The Democrats’ message could put Republicans on the defensive as they try to explain why the government isn’t proactively seeking to return the money. GOP lawmakers had planned to try to preserve their House and Senate majorities by running on the income tax cuts that Trump signed into law last year, saying that tax refunds this year would help families.

Treasury Secretary Scott Bessent told CNN on Sunday that it’s “bad framing” to raise the question of refunds because the Supreme Court ruling did not address the issue. The administration’s position is that any refunds will be decided by lawsuits winding their way through the legal system, rather than by a president who has repeatedly stressed to voters that he has the ability to act with speed and resolve.

“It is not up to the administration — it is up to the lower court,” Bessent said, stressing that rather than offer any guidance he would “wait” for a court opinion on refunds.

Trump has defended his use of the 1977 International Emergency Economic Powers Act to impose broad tariffs on almost every U.S. trading partner, saying that his ability to levy taxes on imports had helped to end military conflicts, bring in new federal revenues and apply pressure for negotiating trade frameworks.

The University of Pennsylvania’s Penn Wharton Budget Model released estimates that the refunds would total $175 billion. That’s the equivalent of an average of $1,300 per U.S. household. But determining how to structure reimbursements would be tricky, as the costs of the tariffs flowed through the economy in the form of customers paying the taxes directly, as well as importers passing along the cost either indirectly or absorbing them.

The president has previously claimed that refunds would drive up U.S. government debt and hurt the economy. On Friday, he told reporters at a briefing that the refund process could be finished after he leaves the White House.

“I guess it has to get litigated for the next two years,” Trump said, later amending his timeline by saying: “We’ll end up being in court for the next five years.”

AP Business writer Stan Choe and Banner staff contributed to this report.