Treasury chief calls $166 billion tariff refund a corporate windfall

Treasury Secretary Scott Bessent labeled the $166 billion in court-ordered tariff refunds a "corporate welfare" scheme, emphasizing that law directs the money to importers who originally paid duties, not the consumers who bore higher prices. The refunds arise from the Supreme Court’s February decision that the International Emergency Economic Powers Act did not authorize the tariffs, prompting a shift to temporary and Section 301 duties now under litigation.

U.S. Customs and Border Protection has processed roughly $128.68 billion, with about $100 billion certified for Treasury disbursement, though the Treasury has not revealed actual payments. Judges have observed that most refunds have gone to large importers, leaving many small entries rejected. FedEx and UPS have begun issuing refunds with interest, but details on amounts remain unclear. Analysts from the Committee for a Responsible Federal Budget project the replacement duties will recoup less than 60% of the lost revenue, potentially expanding deficits by $900 billion through 2036.