Dem senator puts Trump on notice over ‘unlawfully collected’ tariff funds after Supreme Court loss

FIRST ON FOX: A Senate Democrat is demanding that the Trump administration refund billions in tariff revenue to Americans following last week’s Supreme Court decision, according to a letter first obtained by Fox News Digital.

Sen. Ruben Gallego, D-Ariz., wrote in a letter to President Donald Trump charging that he was concerned over the White House’s "lack of action" to issue refunds to families and small businesses impacted by tariffs.

His appeal to the president comes after the Supreme Court ruled in a 6-3 decision last week that Trump’s use of the International Emergency Economic Powers Act (IEEPA), the law undergirding his sweeping duties, "does not authorize the President to impose tariffs."

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"The invalidation of these IEEPA tariffs is a chance to make American families and small businesses whole — not to retain unlawfully collected funds or enable additional corporate profit," Gallego wrote.

Gallego’s letter comes as Congress wrestles with its next move on tariffs and as Trump has vowed to sidestep lawmakers in his quest to continue levying duties on other countries.

Some Republicans want to see Trump’s tariffs considered through budget reconciliation — the same party-line move used to pass his "big, beautiful bill" last year — to meet the deliberative parameters established in the court’s decision.

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Others think Trump doesn’t need to come to Congress. The president already moved to reinstate 10% tariffs that are set to last for 150 days and will require lawmakers to weigh in on continuing them.

Several congressional Democrats want to see the administration tender full refunds from the billions raked in under Trump’s tariffs — 25 Senate Democrats back a newly introduced bill led by Sen. Ron Wyden, D-Ore., to refund all duties with interest.

And Gallego specifically wants guardrails to ensure that money ends up in the hands of families and small businesses.

"Absent action from this administration, over $100 billion in tariff revenue collected under those unlawful tariffs will not make it into the hands of American families and small businesses but instead will remain either in government coffers or in corporate accounts," Gallego wrote.

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Since the start of the current fiscal year in October, Trump’s IEEPA tariffs are estimated to have generated roughly $155 billion, according to data from the Treasury Department.

He also raised concerns about large corporations taking advantage of the "chaotic and expansive nature of the IEEPA tariffs" to crank up prices on products in response to the duties.

Gallego included several requests of the administration in his letter to be met no later than March 4, including whether the administration will issue tariff refunds, who will be eligible, how much revenue has been collected as of Feb. 20 and whether corporations will be required to disclose tariff costs passed on to consumers, among several others.

He also warned that corporations, armed with the financial firepower to hire "high-priced lawyers and lobbyists," would have a leg up on Americans without the same means.

"Without your administration providing a structured process to determine how refunds should be distributed, American families and small businesses will once again be left behind," Gallego wrote.