Delayed Tariff Refund Could Cost Taxpayers $700M Per Month, Economists Warn

Source: Newsweek

Mar 03, 2026 at 11:49 AM EST


Economists have warned that slow-walking the rebates for President Donald Trump’s now-defunct emergency tariffs could result in high costs for the government, given the interest that is accruing on revenues from the illegally collected duties.

On February 20, the Supreme Court ruled that the president was unable to impose tariffs under the International Emergency Economic Powers Act (IEEPA), which had been invoked for the majority of Trump’s global duties. And according to a new analysis from the free-market-oriented Cato Institute, interest is compounding on the estimated $175 billion owed to importers at a rate of $20 million per day, or $700 million per month.

“If the government were to drag out refund lawsuits until the end of the president’s term, as he recently suggested, taxpayers would owe importers about $25 billion more,” their report reads. Newsweek reached out to the White House via email for comment.

Why It Matters

The Trump administration has, in the past, acknowledged its duty to refund tariff revenues should these be struck down, but officials have said they will await guidance from a lower court on this matter while also seeking to delay the process and the eventual payments. Current and former officials have said that the task of refunding billions of dollars will likely prove a lengthy, arduous and, as Cato’s analysis highlights, costly one for the U.S. government.

Read more: https://www.newsweek.com/delayed-tariff-refund-could-cost-taxpayers-700m-month-11613118