Senate Democrats are moving to return as much as $175 billion to businesses and consumers following a Supreme Court ruling that invalidated key elements of President Donald Trump’s tariff policy.
The proposed Trump tariffs refund bill, introduced Monday, would require U.S. Customs and Border Protection (CBP) to repay what lawmakers describe as “unlawfully collected duties” tied to tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA). The Supreme Court ruled last week, in a 6-3 decision, that President Trump exceeded his authority under IEEPA when implementing sweeping tariffs on foreign trading partners.
While the Court determined the tariffs were unlawful, it stopped short of ordering refunds or setting a timeline for repayment. That gap has now triggered legislative action on Capitol Hill.
Under the Democratic proposal, CBP would have 180 days from enactment to process all refunds and would be required to include interest payments. The bill also directs the administration to prioritize small businesses and coordinate with the Small Business Administration to ensure companies receive clear guidance on reclaiming funds.
Sen. Ron Wyden (D-Ore.), a lead sponsor, sharply criticized the administration’s tariff strategy.
“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.
“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,” Wyden said.
Sen. Ed Markey (D-Mass.), another sponsor, emphasized the scale of potential repayments.
“Trump’s illegal tariff taxes cost small businesses, consumers, and families up to $175 billion. That money must be repaid immediately. For small businesses with little to no resources, this refund process can be extremely difficult and time consuming,” Markey said.
Sen. Jeanne Shaheen (D-N.H.) added that the tariffs “have only caused uncertainty and pain — raising prices on consumers and businesses when they can least afford it.”
She said “it’s critical” in the aftermath of the Supreme Court’s decision “that American families and small businesses get the relief they need.”
The administration has signaled that the issue of refunds remains unsettled. Treasury Secretary Scott Bessent said the matter has been sent back to a lower court for further consideration.
“The Supreme Court remanded it down to a lower court. And, you know, we will follow what they say, but that could be weeks or months when we hear them. So, the Supreme Court did not address refunds,” Bessent told CNN’s Dana Bash when asked about refunds.
Beyond refunds, Democrats are also preparing to challenge a separate tariff initiative. Senate Democratic Leader Chuck Schumer (N.Y.) announced plans to block the administration’s proposal to impose a new 15 percent global tariff under Section 122 of the Trade Act of 1974 — a provision that allows temporary tariffs of up to 15 percent for 150 days to address “large and serious” trade deficits.
“Donald Trump’s 15% global tariffs will continue to raise prices and make life unaffordable for millions of Americans,” Schumer said in a statement.
“Senate Democrats will continue to fight back against Trump’s tariff tax, and will block any attempt to extend these harmful tariffs when they expire this summer. Democrats will not go along with furthering Trump’s economic carnage,” he declared.
Although the president can maintain the 15 percent tariff rate for up to 150 days under the 1974 Trade Act, extending it beyond that window would require congressional approval.
The unfolding dispute now places trade policy, small business relief, and federal tariff authority squarely at the center of a high-stakes legal and political battle — one with potentially billions of dollars in consequences for American importers, manufacturers, and consumers.
