US may end up owing $1 trillion in refunds

Economists urged SCOTUS to intervene and stop Trump’s attempt to seize authority to impose boundless reciprocal tariffs—arguing the economic impact “is predicted to be far greater than in two programs” SCOTUS previously struck, including the Biden administration’s $50 billion plan for student loan forgiveness.

In September, Treasury Secretary Scott Bessent warned justices that “the amount to be refunded could be between $750 billion and $1 trillion if the court waits until next summer before issuing a ruling that says the tariffs have to be repaid,” CNBC reported.

During oral arguments, Justice Amy Coney Barrett fretted that undoing Trump’s tariffs could be “messy,” CNBC reported.

However, some business owners—who joined the We Pay Tariffs coalition weighing in on the SCOTUS case—told CNBC that they think it could be relatively straightforward, since customs forms contain line items detailing which tariffs were paid. Businesses could be paid in lump sums or even future credits, they suggested.

Rick Muskat, CEO of family-run shoe company DeerStags, told CNBC that his company paid more than $1 million in tariffs so far, but “it should be simple for importers to apply for refunds based on this tariff itemization.” If the IRS can issue repayments for tax overpayments, US Customs should have “no problem” either, he suggested—especially since the agency automatically refunded US importers with no issue during a 2018 conflict, CNBC reported.

If there aren’t automatic refunds, though, things could get sticky. Filing paperwork required to challenge various tariffs may become “time-consuming and difficult” for some businesses, particularly those dealing with large shipments where only some products may have been taxed.

There’s also the issue that some countries’ tariffs—like China’s—changed “multiple times,” Joyce Adetutu, a partner at the law firm Vinson & Elkins, told CNBC. “It is going to take quite a bit of time untangling all of that, and it will be an administrative burden,” Adetutu said.