President Trump on Thursday floated using some of the tariff revenue the US has taken in so far to provide cash bailouts to farmers struggling with the early effects of the duties. This promise may not work out. Why?
Lower Courts Have Ruled Against the Tariffs: The U.S. Court of International Trade and, subsequently, the U.S. Court of Appeals for the Federal Circuit have both ruled that the tariffs exceed the President's authority. Their decisions centered on the interpretation of the International Emergency Economic Powers Act (IEEPA), the primary legal basis for the tariffs. The courts concluded that the IEEPA does not grant the President the power to impose such broad and sweeping tariffs, as that power is constitutionally reserved for Congress.
Supreme Court Has Taken the Case: Following the appellate court's decision in late August 2025, the administration appealed to the Supreme Court. The Supreme Court has agreed to hear the case on an expedited basis, with oral arguments scheduled for the first week of November 2025.
Tariffs Remain in Effect Pending Ruling: Despite the lower court rulings, the tariffs remain in effect. The courts have stayed their decisions, meaning the government can continue to collect the tariffs until the Supreme Court issues a final ruling.
In short, while multiple lower courts have found the tariffs to be an unconstitutional overreach of executive power, the ultimate and binding decision rests with the Supreme Court. A final answer on their constitutionality is expected soon, potentially by the end of the year.
The administration has for weeks said it is looking into the potential relief for farmers, though it's unclear how they would attempt to provide it. The Trump administration provided billions in farmer aid during the trade wars of his first term, mostly due to the effects of retaliatory tariffs from China.
The legal basis for refunding unconstitutionally collected taxes is well-established. The U.S. government generally cannot retain funds that it has collected without legal authority. The Tucker Act is a key federal statute that waives sovereign immunity and allows for certain lawsuits against the United States, including claims for the return of money illegally collected by the government.
Trump floats bailouts for farmers using tariff revenue?
