Bessent made the assertion in an interview with Reuters. The Trump administration is facing lawsuits from Costco, Kawasaki Motors, Revlon, and Bumble Bee Foods, among others, over the tariffs. These companies are seeking a full refund of the tariffs they have paid to the Trump administration for foreign products, with interest.
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According to Bessent, the $774 billion the Treasury has on hand will be more than sufficient to pay the refunds should the Supreme Court rule against Trump’s emergency powers.
“We’re not talking about the money all goes out in a day. Probably over weeks, months, may take over a year, right?” Bessent said.
However, the secretary was doubtful that the court would rule against Trump. Bessent suggested there was “very, very little, if any, pass-through” of tariffs on to customers and questioned whether Costco would pass the refunds on to its customers.
“It won’t be a problem if we have to do it, but I can tell you that if it happens, which I don’t think it’s going to, it’s just a corporate boondoggle,” Bessent said.
Late last year, Costco reported that it asked Customs and Border Protection to include the retailer in liquidated tariff dividends, but the request was denied. In its lawsuit, Costco cited tariffs against Mexico, Canada, and China as the reason it paid increased tariffs since Trump signed the executive orders. According to the retailer, these were “unlawfully collected tariffs.”
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The key question for the Supreme Court is whether the law grants the president authority to impose tariffs. Should the court rule against Trump’s use of the International Emergency Economic Powers, Bessent has already teased using sections of the 1962 Trade Act as a means of replicating the current tariff regime. Bessent revealed this strategy during last year’s New York Times DealBook Summit.
Traditionally, Congress has controlled tariffs. Article I, Section 8 of the Constitution states, “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises … but all Duties, Imposts and Excises shall be uniform throughout the United States.”
