Bessent Make Surprising Confession
The U.S. Treasury has more than enough money on hand to cover any potential tariff refunds if the Supreme Court were to rule against President Donald Trump’s emergency trade measures, Treasury Secretary Scott Bessent said Friday.
Speaking in an interview, Bessent explained that while the government is financially prepared, any refunds would be issued gradually over time—possibly taking months or even more than a year to complete.
Despite ongoing legal challenges, Bessent said he remains confident the Supreme Court will ultimately side with President Trump. He also cautioned that a ruling against the tariffs could primarily benefit large corporations rather than American consumers.
Corporations Could Gain While Consumers Lose
Bessent raised concerns that many of the companies challenging the tariffs may have already passed higher costs on to customers. If refunds were ordered, he questioned whether those companies would actually return the money to consumers.
Using major retailers as an example, Bessent warned that refund payments could turn into a corporate windfall instead of meaningful relief for families already dealing with higher prices.
Tariffs Not Driving Inflation, Treasury Says
The Treasury secretary pushed back against claims that President Trump’s tariffs fueled inflation. According to Bessent, there has been little evidence that businesses broadly passed tariff costs onto consumers.
He noted that goods-related inflation has remained lower than overall inflation levels, disputing repeated media claims that tariffs were responsible for price increases.
Supreme Court Delay May Help Trump’s Case
Trade lawyers and importers had expected a Supreme Court decision on the tariff challenge this week. Instead, the Court issued a ruling on a separate matter, leaving the tariff case unresolved for now.
The lawsuit challenges the president’s use of emergency economic powers to impose broad tariffs on foreign trading partners. Bessent suggested that the longer the Court delays its decision, the more likely it becomes that the ruling favors President Trump.
Treasury Has Nearly $774 Billion in Cash
As of Thursday, the U.S. Treasury held approximately $774 billion in available cash—far more than enough to cover any possible refund obligations.
Even in a worst-case scenario, Bessent emphasized that payments would not be made all at once, reducing the risk of disruption to federal finances.
For now, the administration maintains that President Trump’s tariff strategy remains lawful, fiscally sound, and focused on protecting American workers while keeping inflation under control.
