Tariff reversal forces new political and economic questions

A fight over Trump’s tariffs is turning into a headache over money flow, and Kevin Hassett is the one spelling out how messy it could get.

He warned that a Supreme Court ruling that kills the tariffs and forces refunds would cause what he called an “administrative problem,” since the government would need to return fees collected on imports.

He said the White House believes the court will side with the administration, but even if it does not, he said it is “pretty unlikely” the justices will demand full refunds because of the difficulty of getting that cash back to the right people.

The case focuses on tariffs Donald Trump put on dozens of countries under the 1977 International Emergency Economic Powers Act. Officials already drafted plans to bring the tariffs back if the administration loses in court. They still say a loss is not expected, but they want options ready.

Tariff reversal forces new political and economic questions

Kevin, who is also a leading contender to take Jerome Powell’s job at the Federal Reserve, said the work needed to return tariff money would weigh heavily on the court.

Kevin said importers would get the refunds first and then would need to pass that money to customers who bought the goods.

Kevin said this extra step makes the entire idea tough to carry out because every importer would face long and detailed work to track who gets what.

He also said the stronger economy has improved the odds of a plan that would send one-time $2,000 rebate checks to many Americans. Trump has talked about these checks often, saying the money would come from tariff revenue to ease cost-of-living pressure.

Republicans in Congress have not backed the idea, but Kevin said he now sees more room for it. He said that “in the summer, I wasn’t so sure that there was space for a check like that, but now I’m pretty sure that there is,” pointing to more growth and a smaller federal deficit. He said he expects Trump to send a plan to Congress early in the new year.

The administration is also working on new steps to make homes easier to buy. The goal is to release the full plan at the start of next year.

Mortgage rates have fallen, with the 30-year fixed rate for the week ending Dec. 18 down to 6.21%, near a low for 2025, but still higher than the roughly 3% rates Americans saw a few years ago. Kevin said the team has a list of housing actions ready for Trump.

He said on Fox News Sunday that “we’ve got a list of things that we’re going to present to the president.”

Kevin added that he and other officials expect to stay at Mar-a-Lago for much of the week after Christmas to sort out the full slate of ideas for 2025. He said the housing plans have already been checked by several cabinet members and will reach Trump “in a week or two.”

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