Scott Bessent says Americans won't see the $175 billion funds raised via illegal US tariffs — Here's why

US Treasury Secretary Scott Bessent said that citizens of the country may not see the $175 billion raised from Trump's tariffs under the International Emergency Economic Powers Act (IEEPA), which was recently struck down by the Supreme Court.

Many American households were looking forward to the $2,000 check promised by President Donald Trump and the White House. While there was no solid update to begin with, even as Trump claimed several times that the checks would be sent soon, the hopes of the money actually reaching bank accounts are now bleaker than ever.

Several economists and analysts have said that some $175 billion is now locked up in litigation for refunds, and Bessent admitted that the funds are unlikely to ever come to light for consumers.

What did Scott Bessent say?

Speaking at the Economic Club of Dallas following Friday's Supreme Court ruling on tariffs, Scott Bessent clarified that the judgment did not specify how the funds collected from the IEEPA tariffs should be handled. Therefore, that decision may be forwarded to international trade courts.

“My sense is that could be dragged out for weeks, months, years, so … we’ll see what happens there,” he said,

He noted that IEEPA tariffs may never see the light of day for consumers. “I got a feeling the American people won’t see it.”

Bessent claims tariff collection won't see drop

Scott Bessent noted that using other forms of US tariffs, such as Section 232 (a national security justification) or Section 301 (unfair trade practices), means tariff revenue won’t drop or slow.

“Let's be clear about what today's ruling WAS and what it WASN'T. Despite the misplaced gloating from Democrats, ill-informed media outlets, and the very people who gutted our industrial base, the Court did not rule against President Trump's tariffs. Six justices simply ruled that IEEPA authorities cannot be used to raise even $1 of revenue,” he claimed.

The Treasury Secretary noted that the Trump administration would use other methods to keep imposing tariffs.

“This administration will invoke alternative legal authorities to replace the IEEPA tariffs. We will be leveraging Section 232 and Section 301 tariff authorities that have been validated through thousands of legal challenges,” he said during Friday's event.

Despite the legal setback, Bessent stated that Treasury estimates show tariff revenue will remain “virtually unchanged” in 2026 as the administration transitions to these other mechanisms.

Treasury's estimates show that the use of Section 122 authority, combined with potentially enhanced Section 232 and Section 301 tariffs, will result in virtually unchanged tariff revenue in 2026," he added.

Supreme Court ruling on US tariffs and the aftermath

The US Supreme Court on Friday ruled 6-3 that the Trump administration exceeded its legal authority by using the International Emergency Economic Powers Act (IEEPA) of 1977 to impose broad-based import tariffs.

Chief Justice John Roberts, joined by Justices Neil Gorsuch, Amy Coney Barrett, and the three liberal justices, held that the IEEPA does not explicitly authorise the president to levy duties — a power the Constitution assigns to Congress.

Calling the ruling ‘shameful’, Donald Trump immediately announced that he will impose a flat 10% global tariff on all nations under Section 122 of the Trade Act of 1974. This authority allows for a temporary import surcharge (up to 15%) for 150 days to address balance-of-payments deficits.

Just a day later, on Saturday, the US President announced that he would raise the global tariff to the maximum limit of 15%. The newly imposed US tariffs are set to kick in from Tuesday (local time).

While the US Customs and Border Protection agency and the White House issued notices stating that tariff collection would begin after 12:00 AM EST on 24 February, Trump issued a warning to trade partners.

He warned countries against backing away from recently negotiated trade deals with the US, saying that if they did, he would hit them with much higher duties under different trade laws.

“Any Country that wants to 'play games' with the ridiculous supreme court decision, especially those that have 'Ripped Off' the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!” Trump wrote on Truth Social.