03.02.26

Cantwell & Murray Introduce Legislation to Require Refunds of Trump’s Illegal Tariffs

Bill cosponsored by 22 Senate Dems instructs the Trump Administration to prioritize small businesses; Legislation would require a full refund of Trump’s illegal tariffs - with interest -- within 180 days

WASHINGTON, D.C. – U.S Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation and senior member of the Senate Finance Committee, and U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, joined 20 of their colleagues in introducing legislation that would require full refunds of President Donald Trump’s illegal tariffs. The U.S. Supreme Court struck the tariffs down on Feb. 20 by a 6-3 vote.

To date, the Trump administration has collected an estimated $175 billion in illegal tariff revenue, raising taxes 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.

“Trump’s trade wars cost Washington state businesses an estimated $2.5 billion last year. The Treasury department needs to immediately release the data on which importers paid his unlawful tariffs and their plan for refunding these burdensome taxes, especially to the small businesses in our state,” Sen. Cantwell said.

“Trump’s senseless tariffs upended entire industries, drastically drove up costs for families, and blocked our small businesses from markets they depended on—it was sheer stupidity that cost us jobs and raised prices for just about everyone. The Supreme Court made clear—Trump did not have the authority to impose this erratic tariff regime this way. Unfortunately, the damage has already been done, but with this bill we can force this administration to get refunds out quickly to American small businesses. Working families and small businesses are the ones that paid the price for Trump’s destructive tariffs, Republicans should join us to make sure they get back the money Trump took with his illegal tariffs,” said Sen. Murray.

The law requires the Trump Administration to refund, with interest, any duties determined to have been collected but not due under the law. However, it is unclear what timeline, process, or other guidelines the Administration will follow to provide the required refunds—and the lack of a clear, accessible process would advantage large importers with resources to dedicate to outside counsel and consultants.

The Tariff Refund Act of 2026 would ensure that U.S. Customs and Border Protection (CBP) completes the payment of refunds quickly, in a transparent and accessible process, 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.

The Tariff Refund Act of 2026 would:

  • Require 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.
    • Set a deadline of 180 days after enactment for CBP to process all refunds.
    • Require CBP to pay interest on the refunded amount.
  • Direct 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.
  • Require CBP to report every 30 days to relevant congressional committees on the status of refunds until CBP has completed the payment of all refunds.
  • Direct CBP to issue guidance on how to address duty drawback claims.
  • Express the Sense of Congress that importers, wholesalers, and large corporations should pass on those refunds to their customers.

Immediately following President Trump’s April 2, 2025, ‘Liberation Day’ tariffs, Sen. Cantwell introduced the bipartisan Trade Review Act to reaffirm Congress’ key role in setting and approving U.S. trade policy. The Trade Review Act of 2025, modeled after the War Powers Resolution of 1973, would reestablish limits on the president’s ability to impose unilateral tariffs without the approval of Congress. Sen. Cantwell’s bill has equal support from Republicans and Democrats, and a bipartisan companion bill has also been introduced in the House of Representatives. Last October, the U.S. Chamber of Commerce, the world’s largest business organization, endorsed Sen. Cantwell’s legislation, and the National Taxpayers Union included the Trade Review Act in their Top 10 Bipartisan Bills for Taxpayers “No Brainer” list for 2025. View all statements of support, including from organizations that represent millions of small, medium, and large businesses, HERE.

Sen. Murray has been vocal in responding to Trump’s trade war, holding events in every part of Washington state, and hammering the Trump administration for driving up the cost of just about everything through their chaotic and thoughtless trade policies. When Trump first announced new tariffs, Sen. Murray brought together leaders across Washington state to discuss how Trump’s trade war threatens Washington state’s economy, and spoke out on the Senate floor against Trump’s chaotic trade war. Sen. Murray has voted repeatedly to end Trump’s tariffs, and has called on Republicans in Congress to join Democrats in reasserting Congress’s power over trade. She has held several events across Washington state to hear directly from constituents and small business owners about how Trump’s tariffs are harming them—including in Tacoma, Yakima, Vancouver, Seattle, Skagit County, and Blaine, just across the border from Canada. On August 1st, as Trump hiked “reciprocal” tariffs on some of our closest trading partners, Sen. Murray held another virtual press conference with Washington state businesses to sound the alarm. She held another roundtable with small business owners in Vancouver in September, and slammed Trump for the new port fees that had been hitting ships at West Coast Ports as a result of Trump’s trade war with China. In November, Sen. Murray released a statement criticizing Trump’s tariffs and calling on Republicans to step up to put an end to them after the U.S. Supreme Court heard oral arguments on the legality of Trump’s disastrous tariffs.

The Tariff Refund Act of 2026 was introduced by U.S. Senators Ed Markey (D-MA), Ron Wyden (D-OR), and Jeanne Shaheen (D-NH). In addition to Sens. Cantwell and Murray, it is also co-sponsored by: Sen. Chuck Schumer (D-NY), Sen. Ben Ray Luján (D-NM), Sen. Mazie Hirono (D-HI), Sen. Chris Coons (D-DE), Sen. John Hickenlooper (D-CO), Sen. Angus King (I-ME), Sen. Angela Alsobrooks (D-MD), Sen. Andy Kim (D-NJ), Sen. Jacky Rosen (D-NV), Sen. Dick Durbin (D-IL), Sen. Tim Kaine (D-VA), Sen. Alex Padilla (D-CA), Sen. Mark Warner (D-VA), Sen. Adam Schiff (D-CA), Sen. Richard Blumenthal (D-CT), Sen. Chris Van Hollen (D-MD), and Sen. Michael Bennet (D-CO).

A copy of the bill text is HERE.