This bill would require small businesses to be paid back first, builds on Hickenlooper’s Small Business RELIEF Act
WASHINGTON – U.S. Senator John Hickenlooper, and 21 of his Senate colleagues introduced the Tariff Refund Act of 2026 to force the Trump administration to fully refund businesses who paid their illegal tariffs. The legislation comes after the U.S. Supreme Court struck down the illegal tariffs last Friday.
“President Trump’s tariffs were illegal from the start. Hard working families and small businesses should never have had to pay this extra tax,” said Hickenlooper. “Now, the White House needs to immediately return the money they took. ”
Hickenlooper has always been an outspoken opponent of Trump’s reckless tariff regime. Last year, he introduced the Small Business RELIEF Act to exempt small businesses from the admin’s sweeping tariffs and give them refunds for the tariffs they have already paid. He also supported the challenge against the Trump administration that was considered in this Supreme Court decision, signing onto an amicus brief for the case. In October, Hickenlooper also helped pass the Senate effort to end the emergency declaration the White House has used to try to justify their illegal tariffs that have increased prices on Americans.
Over the summer, Hickenlooper chaired a field hearing of the Senate Small Business and Entrepreneurship Committee in Denver to highlight the strain the outdoor recreation industry is facing under the Trump administration’s chaotic tariffs.
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 working families. It is also reported that Coloradans paid over $760 million in tariffs before the Supreme Court ruling. The Tariff Refund Act of 2026 will require the full refund of those funds to all importers, while prioritizing small businesses. This builds on Hickenlooper’s Small Business RELIEF Act which focuses only on small business refunds.
The Trump administration previously recognized that it must refund, with interest, any money unlawfully collected. However, it is unclear what timeline, process, or other guidelines the Trump administration would follow to provide refunds.
The Tariff Refund Act of 2026 would ensure that U.S. Customs and Border Protection (CBP) quickly refunds businesses and prioritizes the interests of small businesses first.
Specifically, the bill 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.
- Demand that importers, wholesalers, and large corporations should pass on those refunds to their customers.
Full text of the bill is available HERE.
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