Treasury Secretary Scott Bessent refused to commit to issuing $134 billion in potential tariff refunds during a post-State of the Union interview, instead framing corporate demands for repayment as a form of government handout.
The Refund Standoff
Following President Donald Trump's 2026 State of the Union address, Bessent addressed the growing legal and financial fallout from a recent Supreme Court ruling that restricted the administration's tariff authorities.
When pressed by NBC News' Kristen Welker on whether the government would return an estimated $134 billion in revenue to impacted companies, Bessent sidestepped the tariff refund question, noting that the matter had been remanded to lower courts.
“We will follow the ruling of the lower court,” Bessent stated, emphasizing a 42-day waiting period before further action. However, he quickly pivoted to a populist defense of the administration's refusal to pay, suggesting that returning the funds would not benefit the public.
Attacks On ‘Corporate Welfare’
Bessent aimed at major shipping giant FedEx Corp. (NYSE:FDX), which has recently sued the administration for refunds. He challenged the motives of large firms, essentially labeling their pursuit of money as a drain on the Treasury.
“I think all these corporations should come out and tell everyone… how [they are] going to get the money back to the consumers if [they], in fact, passed those costs along,” Bessent said.
In a sharp critique of the legal challenges, he reportedly called corporate lawsuits ‘ultimate corporate welfare’ during his pushback against the business community.
Navigating The Legal Bridge
To maintain economic momentum despite the SCOTUS ruling, Bessent outlined a “bridge” strategy using Section 122 authority for 150 days while the USTR conducts new studies. He asserted that this maneuver would keep tariff income “virtually unchanged” for 2026.
Bessent remained defiant toward critics, maintaining that the administration's primary goal is to “reassure American industry and stop unfair trade practices,” regardless of the mounting legal pressure from the private sector.
Benchmark Indices Stay Flat In 2026
As of Tuesday’s close, the Dow Jones index rose 1.64% year-to-date, whereas the S&P 500 was 0.46% higher and the Nasdaq Composite index was down 1.60% in 2026.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed higher on Tuesday. The SPY was up 0.73% at $687.35, while the QQQ advanced 1.07% to $607.82.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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