As the Trump administration rolls out a new round of global tariffs, Democratic lawmakers have a rallying cry for the coming months: Refund the old tariffs — and quickly.
The Supreme Court’s smackdown of the Trump tariffs left open how businesses would be refunded. Dissenting Justice Brett Kavanaugh openly suggested in his opinion that such a process would be a “mess.”
Democratic lawmakers hope some vulnerable Republicans will join them in legislation supporting businesses that want tariffs refunded soon.
As part of a new Senate bill, rolled out Monday morning and shared early with MS NOW, three top Democrats propose a 180 day deadline for Customs and Border Protection (CBP) to pay refunds for all of the tariffs President Donald Trump imposed under the International Emergency Economic Powers Act, which the court invalidated Friday in a 6-3 decision. The 180 day timer would kick off once the bill became law.
It directs CBP to prioritize refunding small businesses.
The bill is sponsored by Sens. Ron Wyden of Oregon, Ed Markey of Massachusetts and Jeanne Shaheen of New Hampshire — the top Democrats on the Senate Finance, Small Business and Foreign Affairs Committees, respectively.
In a statement, Wyden said, “Trump’s illegal tax scheme has already done lasting damage to American families, small businesses and manufacturers who have been hammered by wave after wave of new Trump tariffs. Senate Democrats will continue fighting to rein in Donald Trump’s price-hiking trade and economic policies.”
The measure also says it is the view of Congress that businesses should pass on “refunds to their customers, including small businesses and families impacted by those duties” — though that provision is non-binding.
The bill rollout comes as the president is offering no commitments on reimbursing companies that file for refunds. On Friday, he argued reimbursements are “not discussed” in the Supreme Court decision.
“We’ll end up being in court for the next five years,” Trump said.
One model pegs the amount of tariff revenue eligible for possible refunds at around $175 billion.
On Friday afternoon, just hours after the Supreme Court announced its decision, a pair of House Democrats offered their own measure to address the refund issue, putting CBP on an even tighter leash than the Senate legislation.
Under the bill by Reps. Steven Horsford, D-Nev., and Janelle Bynum, D-Ore., CBP would have only 90 days to reimburse businesses. Of note, the bill says importers should not have to formally submit an application to get a refund.
In a statement, Horsford said, “When the government takes money without proper authority, it doesn’t get to keep it.”
“It’s time to return the money and begin repairing the damage by this reckless trade policy,” he continued.
Horsford’s team indicated that, in the event House GOP leadership does not allow for consideration of his bill, he is weighing options to force their hand — including potentially pursuing a discharge petition.
While historically a rarely used mechanism, discharge petitions have become a favorite tool of House Democrats over the past year, allowing the party — even though they are in the House minority — to score votes on extending Obamacare subsidies, releasing the Epstein files, and restoring collective bargaining rights to federal employees.
Because of the tight margins in the House, Democrats only ever need a handful of Republicans to join with them to force these votes on legislation of their choosing.
Democrats have made the cost of living and affordability a central tenet of their election pitch, casting Trump’s tariffs — which a majority of Republicans on Capitol Hill have repeatedly voted against undoing — as a major cause of high prices.
There are early signs that even with the Supreme Court ruling, Democrats will continue to lean on tariffs to make their point, using the discussion of tariff reimbursements as a new line of attack to put pressure on congressional Republican moderates and those in competitive districts.
In light of the Supreme Court ruling, for instance, a spokesman for the super PAC that supports House Democrats made clear they will not be letting up on the issue.
“Vulnerable House Republicans repeatedly voted to enable Trump’s tariffs, which raised prices and wreaked economic havoc on American families and businesses,” House Majority PAC Communications Director CJ Warnke said in a statement.
“Their constituents have paid the price, and House Majority PAC will ensure Republicans are held accountable for their votes come November,” Warnke continued.
After the ruling Friday, many congressional Republicans chastised the court’s decision, saying it undermined the president. A handful of Republicans, though, did publicly welcome the ruling for making clear Congress’s authority in tariff policy.
Kevin Frey is a congressional reporter for MS NOW.