Bill Instructs the Trump Administration to Prioritize Small Businesses; Requires Full Refund With Interest of Illegal Trump Tariffs Within 180 Days
Washington, D.C. — Colorado U.S. Senator Michael Bennet, a senior member of the Senate Finance Committee with jurisdiction over trade and tariffs, joined Senate Finance Committee Ranking Member Ron Wyden (D-Ore.), Senate Small Business Committee Ranking Member Edward J. Markey (D-Mass.), and Senate Foreign Relations Committee Ranking Member Jeanne Shaheen (D-N.H.), to release legislation requiring full refunds of President Trump’s illegal tariffs after the U.S. Supreme Court struck them down by a 6-3 vote on Friday.
“President Trump’s trade war has needlessly undercut small businesses, increased costs for Coloradans, and alienated key allies and partners,” said Bennet. “Coloradans deserve a transparent, efficient, and timely process for returning funds spent on tariffs that should never have been collected in the first place. The Tariff Refund Act will reduce uncertainty, support small businesses, and strengthen Colorado’s economy.”
To date, the Trump Administration has collected an estimated $175 billion in illegal tariff revenue, raising costs on products from nearly every country on earth, and jacking up prices for American families. The Tariff Refund Act of 2026 would require the full refund, with interest, of those funds.
The Trump Administration previously recognized that it must refund, with interest, any duties determined to have been unlawfully collected. It is unclear, however, what timeline, process, or other guidelines the administration would follow to provide refunds. The lack of a clear, accessible process would necessarily advantage large importers with resources to dedicate to outside counsel and consultants, further imposing costs on small businesses.
The Tariff Refund Act of 2026 would ensure that U.S. Customs and Border Protection (CBP) completes the payment of refunds quickly and prioritizes the interests of small businesses in that process. Importantly, the bill would ensure that importers are not required to take costly administrative steps to receive a refund of the tariffs unlawfully collected by the administration. The bill would also direct CBP to coordinate with the Small Business Administration (SBA) to provide information and technical support. Finally, the bill’s reporting requirements would provide Congress, which has constitutional authority over trade and tariffs, with proper oversight over the refund payment process.
Specifically, this bill:
- Requires CBP to pay refunds of all tariffs that were unlawfully imposed by the President under IEEPA and paid by importers – even if the importation has already been finalized and closed (“liquidated”) by CBP.
- Sets a deadline of 180 days after enactment for CBP to process all refunds.
- Requires CBP to pay interest on the refunded amount.
- Directs CBP to prioritize small businesses when paying refunds and to coordinate with the SBA to provide key information on the refund process to small businesses.
- Requires CBP to report every 30 days to relevant congressional committees on the status of refunds until CBP has completed the payment of all refunds.
- Directs CBP to issue guidance on how to address duty drawback claims.
- Expresses the Sense of Congress that importers, wholesalers, and large corporations should pass on those refunds to their customers.
In addition to Bennet, Wyden, Markey, and Shaheen, U.S. Senators Chuck Schumer (D-N.Y.), Ben Ray Luján (D-N.M.), Mazie Hirono (D-Hawaii), Chris Coons (D-Del.), John Hickenlooper (D-Colo.), Angus King (I-Maine), Angela Alsobrooks (D-Md.), Andy Kim (D-N.J.), Maria Cantwell (D-Wash.), Jacky Rosen (D-Nev.), Dick Durbin (D-Ill.), Tim Kaine (D-Va.), Alex Padilla (D-Calif.), Mark Warner (D-Va.), Adam Schiff (D-Calif.), Richard Blumenthal (D-Conn.), Patty Murray (D-Wash.), and Chris Van Hollen (D-Md.) cosponsored the bill.
The text of the bill is available HERE.
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