Scott Bessent has ‘got a feeling’ that $175 billion raised under IEEPA is lost to the American people for good

Fortune

by Eleanor Pringle

February 23, 2026

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Treasury Secretary Scott Bessent has expressed concerns that $175 billion in tariffs collected under the International Emergency Economic Powers Act (IEEPA) may never reach U.S. consumers due to ongoing legal disputes. Following a Supreme Court ruling that invalidated President Trump's use of IEEPA for imposing sweeping global tariffs, the funds are now tied up in litigation, with no clear resolution in sight. Bessent indicated that the process could drag on for weeks, months, or even years, leaving American households uncertain about whether they will receive refunds. The Supreme Court's decision invalidated the use of IEEPA to levy tariffs on trading partners, including China, Canada, and Mexico. Initially introduced in February 2025, these tariffs were later expanded under the authority of other trade laws like Section 232 (national security) and Section 301 (unfair trade practices). While the White House is exploring alternative legal pathways to maintain tariff revenue, Bessent emphasized that the funds collected under IEEPA are in limbo. He suggested that these revenues might never be returned to consumers, as the courts will need to determine how they should be handled. Economists estimate that up to $175 billion in potential refunds could be tied up in this legal battle, with daily collections reaching around $500 million by January 2026. However, experts warn that businesses may not pass on any savings to consumers through lower prices or economic stimulus, as the tariffs are likely to remain in place under alternative trade laws. Instead, companies could focus on maintaining their current pricing strategies while benefiting from reduced effective tariff rates. The Trump administration has confirmed plans to enforce a 15% tariff rate under Section 122 of the 1974 Trade Act, allowing for 150 days of collection before potential long-term enforcement actions. However, the

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Originally published on Fortune on 2/23/2026