Updated by Faith Barbara N Ruhinda at 1358 EAT on Monday 8 September 2025

The U.S. Treasury Department will issue tariff rebates if the Supreme Court upholds a lower court ruling that found former President Donald Trump overstepped his authority in imposing “reciprocal” tariffs, Treasury Secretary Scott Bessent said on Sunday.

“We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” Bessent stated during an appearance on NBC News’ Meet the Press.

“If the court says it, we’d have to do it,” he added.

Despite the legal setback, Treasury Secretary Scott Bessent said there are “numerous other avenues” to pursue tariffs, though he acknowledged they would likely “diminish President Trump’s negotiating position.” He did not elaborate on specific alternatives.

Meanwhile, during an appearance on CBS News’ Face the Nation, National Economic Council Director Kevin Hassett noted that the administration could rely on “other legal authorities” to implement tariffs if the Supreme Court does not rule in its favor. He pointed specifically to Section 232 of the Trade Expansion Act, which has previously been used to justify tariffs on steel and aluminum.

The comments come in the wake of an August 29 ruling by a federal appeals court, which found that Trump’s “reciprocal” tariffs exceeded presidential authority. The court concluded that the International Emergency Economic Powers Act (IEEPA) does not grant the executive branch power to impose such tariffs without explicit congressional authorization.

“We discern no clear congressional authorization by IEEPA for tariffs of the magnitude of the Reciprocal Tariffs and Trafficking Tariffs,” the court stated in its majority opinion.

The latest round of the Trump administration’s so-called “reciprocal” tariffs—introduced in early August—will remain in place for now, after a federal appeals court delayed implementation of its ruling until October 14, according to CNN.

The court’s decision has cast doubt on the administration’s ability to continue its current approach to trade negotiations. In response, the Trump administration filed an appeal with the U.S. Supreme Court on Wednesday, warning that the U.S. risks becoming a “poor nation” without protective tariffs.

Despite the legal uncertainty, Treasury Secretary Scott Bessent said on Sunday he is “confident” the administration will prevail at the Supreme Court.

Meanwhile, early signs of economic pressure may be emerging. The Bureau of Labor Statistics reported that the U.S. economy added just 22,000 jobs in August, while the unemployment rate rose to 4.3% — the highest level in nearly four years.

The U.S. goods-producing sector is among the hardest hit by the Trump administration’s tariff policy, which economists say is weighing heavily on hiring and investment. The unpredictable application of the tariffs has had an “undeniable” impact on job growth, RSM US economist Joe Brusuelas wrote in a note to investors on Friday. Goods-related industries have now recorded “four straight months of declines since May,” he noted.

“We can’t snap our fingers and have factories built,” Treasury Secretary Scott Bessent said, acknowledging the strain but pointing to potential job gains. “We are going to see construction jobs and manufacturing jobs,” he added, crediting the recently passed “One Big Beautiful Bill” for sparking future growth.

The Trump administration has maintained that tariffs are necessary to protect American industries and that U.S. companies should absorb the additional costs. However, major corporations — including Nike, Hasbro, and Walmart — have warned that tariffs will ultimately result in higher consumer prices.

Despite those warnings, tariff collections continue to surge. The U.S. government collected approximately $28 billion in customs duties in July, according to the Treasury Department’s monthly statement — a significant increase from the $16.8 billion collected in April.

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