The Tariff Refund Act of 2026
Democratic senators unveiled a bill demanding the refund of $175 billion in tariffs collected before the Supreme Court ruled that the Trump administration exceeded its authority when imposing tariffs under the International Emergency Economic Powers Act.
The bill, named the Tariff Refund Act of 2026, was initiated by Senator Ron Wyden and co-sponsored by Ed Markey, Jeanne Shaheen, and 19 other Democratic senators. The text requires U.S. Customs and Border Protection to provide full refunds to affected importers by August 20, prioritizing small businesses.
Senator Wyden stated that the tariffs "have caused long-lasting harm to American families, small businesses, and manufacturers."
Blocking New 15% Tariffs
Senate Minority Leader Chuck Schumer and his allies are seeking to block a new 15% global baseline tariff proposed by President Trump under Section 122 of the Trade Act of 1974; this rate would remain in effect for 150 days unless approved by Congress.
Supreme Court Ruling
On Friday, the Supreme Court ruled 6–3 that the imposition of a 10% global baseline tariff and other tariffs under the International Emergency Economic Powers Act exceeded executive authority. The ruling did not mandate refunds, leaving that decision to lower courts.
Secretary of the Treasury Scott Bessent told CNN that the refund issue "falls under the jurisdiction of lower courts." U.S. Customs and Border Protection stated that it has taken note of the ruling and is prepared to implement current and future directives as instructed by the president.
House Democrats are also drafting similar legislation to refund businesses affected by previous tariff policies.
