Democrats demand that Trump issue $1,700 tariff refunds to Americans after the Supreme Court ruling
Business Insider
February 21, 2026
AI-Generated Deep Dive Summary
Democrats are urging President Donald Trump to issue $1,700 tariff refunds to American families following a Supreme Court ruling that struck down his tariffs under the International Emergency Economic Powers Act (IEEPA). California Gov. Gavin Newsom and Illinois Gov. JB Pritzker have called for these refunds, with Newsom describing the tariffs as an "illegal action" and Pritzker sending a demand letter along with an invoice billing $1,700 per family in Illinois.
The Supreme Court ruled that Trump's tariffs exceeded presidential authority under IEEPA, which was used to impose trade restrictions on China. While the court invalidated the tariffs, it did not address refunds directly. However, Democrats are pushing for repayment based on a report by the Joint Economic Committee, which found American families paid an average of $1,745 in tariff costs between February 2025 and January 2026. Other studies confirm that businesses and consumers bear most of these costs.
White House spokesman Kush Desai dismissed Pritzker's demands, suggesting he prioritize state-level relief instead. Meanwhile, Trump has hinted at continuing tariffs through alternative means and expressed doubt about refunds, stating they could face legal challenges for years. Treasury Secretary Scott Bessent also doubts the likelihood of refunds, predicting a lengthy process.
This issue matters to business readers as it highlights ongoing trade policy disputes and their economic impact on industries, consumers, and U.S.-China relations. The legal battles over tariff refunds and potential repayment mechanisms will likely shape future trade negotiations and corporate strategies.
Verticals
businessfinance
Originally published on Business Insider on 2/21/2026