Trump Tariffs: AG James Demands $166B Refund

NEW YORK – A shadow hangs over American wallets as the fallout from former President Trump’s unlawful tariffs continues to fester. New York Attorney General Letitia James is leading a charge of 17 other state AGs, demanding Congress intervene and force a full refund of approximately $166 billion in illegally collected tariffs. The Supreme Court dealt a blow to Trump’s authority on February 20, 2026, striking down the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), but the money stolen from American businesses and consumers remains unreturned.

The fight began in April 2025 when Trump, invoking IEEPA, slapped sweeping tariffs on goods from across the globe. James and a coalition of 11 other attorneys general immediately sued, arguing the president lacked the legal authority to impose such levies. The Supreme Court sided with James on February 20th, effectively declaring the tariffs unlawful. While the court stopped short of ordering refunds, the Trump administration repeatedly affirmed in court filings that reimbursements would be necessary if the tariffs were overturned – a promise they now seem intent on dodging.

New York alone has absorbed an estimated $13.5 billion in tariff costs, with consumers shelling out over a billion dollars just in January 2026 due to inflated prices. “New Yorkers were charged illegal taxes for months because of this administration’s tariff policy. Now they deserve a refund,” James declared. “These tariffs hurt businesses across our state and raised the cost of groceries, clothes, and other essentials. If this administration won’t do the right thing and give New Yorkers their money back, Congress must step in to get justice for consumers and businesses.”

The problem isn’t just the amount, it’s the bureaucratic nightmare the Trump administration is erecting to avoid actually returning the funds. U.S. Customs and Border Protection (CBP) possesses a complete database of every illegal IEEPA tariff paid by American direct importers. However, the administration insists refunds will only be processed through a new direct deposit platform – a system currently accessible to a paltry six percent of importers. They’ve also hinted at multiple, complicated application processes depending on the shipment’s status. This setup all but guarantees delays and disadvantages small businesses and individuals lacking the resources to navigate the maze.

James and her coalition are pushing for legislation mandating an automatic, uniform, and rapid refund process for all affected importers. But they aren’t stopping there. The AGs are also urging Congress to hold accountable businesses that passed the tariff costs directly onto consumers. While understandable from a business perspective, passing the burden onto already-struggling families feels like adding insult to injury. The letter to House and Senate leadership is a clear message: the time for games is over. Americans deserve their money back.

The stakes are high. This isn’t just about money; it’s about accountability and preventing future abuses of power. If Congress fails to act, it sets a dangerous precedent, signaling that a president can unilaterally impose illegal taxes and then simply refuse to rectify the situation. The Grimy Times will continue to track this case and expose any further attempts to obstruct justice. Stay tuned.