Ranking Member Edward J. Markey, along with Senators Ron Wyden and Jeanne Shaheen, introduced legislation that would require the federal government to refund tariffs collected under former President Donald Trump’s administration. The move follows a recent U.S. Supreme Court decision, which ruled by a 6-3 vote that these tariffs were imposed illegally.
The proposed Tariff Refund Act of 2026 seeks to return nearly $135 billion in tariff revenue collected on products from numerous countries during the Trump administration. The bill mandates full refunds with interest for those affected.
“Trump’s illegal tariff taxes cost small businesses, consumers, and families nearly $135 billion. That money must be repaid immediately. For small businesses with little to no resources, this refund process can be extremely difficult and time consuming,” said Ranking Member Markey. “That is why I am proud to introduce the Tariff Refund Act with Senators Wyden and Shaheen. Our bill would require the tariffs to be refunded and level the playing field—putting small importers and small businesses first in the refund process and eliminating needless administrative barriers. It’s Main Street and working families that paid Trump’s tariff taxes, and we must ensure they get their money back—not big corporations.”
Senator Wyden added: “Trump’s illegal tax scheme has already done lasting damage to American families, small businesses and manufacturers who have been hammered by wave after wave of new Trump tariffs. Senate Democrats will continue fighting to rein in Donald Trump’s price-hiking trade and economic policies. A crucial first step is helping people who need it most, by putting money back in the pockets of small businesses and manufacturers as soon as possible.”
Senator Shaheen stated: “President Trump’s reckless and chaotic tariffs have only caused uncertainty and pain—raising prices on consumers and businesses when they can least afford it. Now that the Supreme Court has made it clear that the President did not have the authority to unilaterally impose sweeping emergency tariffs, it’s critical that American families and small businesses get the relief they need. That starts by President Trump refunding the illegally collected tariff taxes that Americans were forced to pay.”
The legislation is co-sponsored by 19 other Senate Democrats.
The bill requires U.S. Customs and Border Protection (CBP) to issue refunds for all unlawfully imposed tariffs within 180 days of enactment, including interest payments on refunded amounts. CBP would also prioritize refunds for small businesses while coordinating with the Small Business Administration (SBA) to provide information about the process.
Additional provisions include regular reporting requirements for CBP to Congress every 30 days until all refunds are completed, guidance on duty drawback claims, and an expectation that importers pass on refunds to customers.
Previously, the Trump administration acknowledged its obligation to refund unlawfully collected duties but did not specify how or when this would occur.
Markey has previously taken several actions related to this issue: He applauded last week’s Supreme Court decision striking down Trump's tariffs; held press conferences with business owners; released reports detailing impacts on Main Street; sent letters urging agencies for equitable processes; introduced prior bills such as the Small Business RELIEF Act; and attempted passage of legislation exempting small businesses from broad global tariffs.
The Senate Small Business and Entrepreneurship Committee plays a role in providing informed policy options regarding federal budget components as well as supporting national fiscal priorities through oversight activities such as those involving tariff-related matters.
Additionally, this committee was established under the Congressional Budget and Impoundment Control Act of 1974, contributing nonpartisan analysis via oversight of agencies like the Congressional Budget Office (source). Lindsey Graham currently serves as chairman while Jeff Merkley is ranking member (source).
