United States (US) Senate Democrats introduce bill to refund $175 billion in tariff revenue

Key facts

• A group of 22 US Senate Democrats, including Senate Minority Leader Chuck Schumer, introduced legislation requiring the refund of revenue from tariffs struck down by the US Supreme Court.
• The bill mandates the Customs and Border Protection (CBP) agency to refund all tariffs imposed under the International Emergency Economic Powers Act (IEEPA) within 180 days with interest.
• The legislation directs the CBP to prioritise small businesses and manufacturers during the refund process.
• Estimates from the Penn-Wharton Budget Model indicate that over $175 billion in IEEPA tariff collections are subject to potential refunds.
• The IEEPA-based tariffs were generating more than $500 million in gross revenue per day before being struck down.
• The CBP is scheduled to cease the collection of IEEPA tariffs at 12:01 a.m. Eastern Standard Time (EST) on Tuesday.
• US Treasury Secretary Scott Bessent confirmed the administration will follow lower court decisions regarding the refunding of finalised or liquidated duties.
• Co-sponsors of the bill include Senators Ron Wyden, Edward Markey, and Jeanne Shaheen, who lead the Senate Finance, Small Business, and Foreign Relations committees respectively.