Kevin Hassett, the Director of the National Economic Council, shared insights on the future of President Trump’s tariffs during an interview. Speaking on CBS News’ Face the Nation, he discussed the legal challenges surrounding these tariffs, particularly the reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Supreme Court’s Potential Ruling on Tariffs
Lower courts have deemed the IEEPA tariffs illegal. However, the Supreme Court’s decision will ultimately determine their fate. Hassett expressed optimism that the justices would side with the White House.
Refunds for Tariffs Appearing Unlikely
Hassett emphasized that even if the Supreme Court rules against the administration, widespread refunds are improbable. He stated that processing these refunds would present significant administrative challenges. The individuals or companies responsible for paying the tariffs would be the ones eligible for refunds.
- Payments for tariffs are primarily made by U.S. importers.
- Some companies adjust costs, passing a portion of these expenses to consumers.
- Chinese firms have reduced prices to help absorb tariff costs.
Trade experts argue that the federal government handles millions of tax refunds each year, suggesting that tariff refunds could potentially be managed as well. To date, about $90 billion of the projected $174 billion in tariff revenue has been attributed to IEEPA duties.
Legal Action by Companies
Some businesses are proactively seeking refunds if the Supreme Court rules the tariffs illegal. For instance, Costco recently filed a lawsuit in the U.S. Court of International Trade. The lawsuit illustrates growing concerns regarding the assurance of refunds in the event the Supreme Court nullifies these tariffs.
Market Reactions and Future Scenarios
Wall Street analysts predict that the Supreme Court will likely rule against the Trump administration, based on the justices’ skepticism during past hearings. However, it is crucial to note that other tariffs exempt from IEEPA could remain intact, and new tariffs may arise to replace the existing ones.
In a separate discussion with the Wall Street Journal, Trump indicated that alternatives to existing tariffs are less efficient and slower to implement, potentially affecting national security.
