WASHINGTON — This story was originally published on MyNorthwest.com
Even before Friday’s Supreme Court decision, companies were preparing for the possibility that President Trump’s tariffs might not survive. Chief among them was Costco.
The Seattle-based retailer was among thousands of companies that hired lawyers and filed early claims, hoping to get in line for potential refunds to recover an estimated $175 billion already collected.
Now that the justices have struck the tariffs, the question is whether the federal government will return the billions it collected under the International Emergency Economic Powers Act. The high court ruled that Trump wasn’t authorized to impose tariffs under that specific act passed in 1977.
The administration warned that mass refunds could strain the country’s finances.
“The Court says nothing today about whether, and if so how, the government should go about returning the billions of dollars that it has collected from importers,” Justice Brett Kavanaugh said, according to The Associated Press. “But that process is likely to be a ‘mess,’ as was acknowledged at oral argument.”
Trump called the majority decision “a disgrace” when he was notified during his morning meeting with several governors, according to someone with direct knowledge of the president’s reaction who spoke on the condition of anonymity to discuss the private conversation.
“It would be a complete mess, and almost impossible for our Country to pay,” Trump said. “Anybody who says that it can be quickly and easily done would be making a false, inaccurate, or totally misunderstood answer to this very large and complex question.”
According to Reuters, Treasury Secretary Scott Bessent said, back in January, that the administration has adequate funds to refund tariffs, but repayments could take up to a year.
“We’re not talking about the money all goes out in a day,” Bessent told Reuters. “Probably over weeks, months, may take over a year, right?”
Contributing: The Associated Press