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US gov demands $9bn tariff refund from Trump

The Democratic Governor of Illinois, JB Pritzker, has formally demanded nearly $9 billion in tariff refunds for families in his state after the Supreme Court of the United States ruled that former president Donald Trump overstepped his authority in imposing sweeping trade levies.

In a 6-3 decision, the court found that Trump improperly used emergency powers to introduce tariffs that significantly altered global trade flows and contributed to rising consumer prices in the United States.

Reacting to the ruling on Friday, the Illinois governor sent an invoice to the White House and urged immediate repayment.

“Your tariff taxes wreaked havoc on farmers, enraged our allies and sent grocery prices through the roof,” the Democrat wrote, warning further legal action could follow if compensation was not forthcoming.

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In the letter, which was shared with US media outlets, Pritzker calculated that Illinois households are owed roughly $1,700 each, citing estimates from Yale University experts who said the average American household bore that cost in tariff-related expenses last year.

The push for reimbursement is not limited to Illinois. Gavin Newsom, the Democratic Governor of California, also called for repayments, arguing that the funds generated by the tariffs ultimately came from American consumers.

“Time to pay the piper, Donald. These tariffs were nothing more than an illegal cash grab that drove up prices and hurt working families, so you could wreck longstanding alliances and extort them,” he said.

“Every dollar unlawfully taken must be refunded immediately, with interest. Cough up!”

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Both Pritzker and Newsom, widely viewed as possible Democratic contenders in the 2028 presidential race, have framed their demands as a matter of fairness for working families.

The controversy stems from tariffs introduced with great fanfare last April, which have reportedly generated more than $130 billion from importers.

Economists say a sizable share of those costs was passed on to consumers through higher prices.

Treasury Secretary Scott Bessent has expressed doubt that Americans will receive direct payments, underscoring the uncertainty surrounding any refund process.

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According to the Penn-Wharton Budget Model, potential repayments could reach as much as $175 billion, though it remains unclear who would qualify or how the funds would be distributed.

Trump himself has acknowledged that issuing refunds could take years.

During the legal proceedings, Justice Brett Kavanaugh, who dissented, pointed out that the court’s decision “says nothing today about whether, and if so how, the government should go about returning the billions of dollars that it has collected from importers.”

Meanwhile, Kathy Hochul, the Democratic Governor of New York, criticized the tariffs as “an unlawful backdoor tax on hardworking families, farmers and small businesses, raising prices on everything from groceries to building materials,” though she stopped short of calling for refunds.

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