Trump Tariff Legal Battle Poses $1 Trillion Treasury Refund Risk

Treasury Secretary Scott Bessent expressed confidence that the Supreme Court WOULD uphold former President Trump's controversial tariffs, but warned of catastrophic fiscal consequences if the court rules against the administration. The legal challenge centers on Trump's "reciprocal tariffs" imposed under his "liberation day" policy, which a federal appeals court recently deemed an overreach of presidential authority.

The administration faces a narrow window to appeal before the ruling takes effect in October. A delayed Supreme Court decision until 2026 could force the Treasury to refund $750 billion to $1 trillion in collected tariffs, creating unprecedented fiscal disruption. The Justice Department has requested expedited review as the WHITE House warns of potential market instability from such massive refunds.