The U.S. could owe $168 billion to businesses should the Supreme Court rule that reciprocal tariffs implemented by the Trump administration earlier this year were unconstitutional, CBS News reported.
The Trump administration justified its tariffs program under the International Emergency Economic Powers Act of 1977, or IEEPA. The law grants the president broad authority to regulate economic and commercial transactions with foreign nations in response to what officials deem to be an "unusual and extraordinary threat" to the U.S. economy, national security, or foreign policy.
Asked how long companies would have to wait to receive refunds if the tariffs were invalidated by the Supreme Court, U.S. Trade Representative Jamieson Greer said Wednesday that would be up to the Treasury Department and Customs and Border Protection, adding he met the CBP director Tuesday and was uncertain of the timeline.
Greer also said the U.S. could use other measures to replace the roughly $200 billion in revenue it is collecting from tariffs.
According to CBS News, the U.S. has collected $259 billion in tariff revenue.
Striking down tariffs would likely spur U.S. economic growth, Kent Smetters, a professor of business economics and public policy at the University of Pennsylvania's Wharton School, told CBS News.
"Tariffs are one of the least efficient ways of raising revenue," he said, adding that tariffs make companies less productive because they have to pay more for imported parts and products.
"The government would have to come up with that money, so the federal debt would go up a little bit. But if these tariffs really were to go away, it would make U.S. companies more attractive to invest in," Smetters added.
White House spokesperson Kush Desai argued the opposite, telling the news outlet that "the economic and national security consequences of the failure to uphold President [Donald] Trump's lawful tariffs are enormous."
"The White House looks forward to the Supreme Court's speedy and proper resolution of this matter," he added.
Reuters contributed to this report.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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