Supreme Court Case Puts $168 Billion in Tariff Money at Risk

A major Supreme Court decision could force the U.S. government to refund up to $168 billion to businesses. The money was collected through tariffs imposed by former President Donald Trump. The case challenges tariffs placed on steel and aluminum from many countries in 2018. The Trump administration used a law called the "Section 232" statute. It allows tariffs for national security reasons. Businesses that paid the tariffs argue the use of this law was illegal. They say the tariffs were an overreach of presidential power. If the Supreme Court agrees, the government may have to return most tariff revenue collected since 2022. This estimate comes from analysts at the Penn Wharton Budget Model. The refunds would impact federal revenue. However, businesses that already passed the tariff costs to consumers would not automatically refund customers. The Supreme Court's ruling is expected by the end of June.