Democrats say Trump’s illegal tariffs cost every American household $1,700, and now they want every penny paid back

Democrats are pushing for every American household to receive a $1,700 refund for what they call President Trump’s illegal tariffs. This comes after the Supreme Court ruled against Trump’s sweeping tariff agenda, leaving the question of compensation for Americans unresolved.

New York Governor Kathy Hochul sent a letter to U.S. Treasury Secretary Scott Bessent, calling on the federal government to “refund all tariff payments to New Yorkers.” Illinois Governor JB Pritzker and California Governor Gavin Newsom have echoed similar demands. According to Axios, Democrats calculate that Americans are owed billions in compensation, amounting to roughly $1,700 per household.

Senate Democrats announced the “Tariff Refund Act,” a proposed bill that would require U.S. Customs and Border Protection to issue refunds, with priority given to small businesses. This refund push flips President Trump’s own playbook, as he previously promised $2,000 dividend checks amid the general unpopularity of his tariff policies.

Democrats are putting real faces to the $1,700 figure, and the numbers back them up

Senator Elizabeth Warren (D-Mass.) released a video strongly advocating for the $1,700 refund. She shared stories from her constituents, saying, “Back in Massachusetts, I heard from all sorts of companies, from board game makers to baby stroller manufacturers, that tariffs made it more expensive to run their businesses and forced them to raise their prices.”

She added, “The truth is that you paid for Trump’s disastrous economic policies.” The White House and the Office of Management and Budget did not respond to requests for comment. This tariff battle is just one front in a broader legal war, and Trump loyalists pushing a grand conspiracy case shows how aggressively the administration’s allies are fighting back on multiple fronts.

Governor Hochul backed her claim by referencing a January study from a university budget lab, which found that the 2025–26 tariffs caused a 1.3% increase in consumer prices in the short run. The study estimated a short-run income loss of about $1,751 per household on average in 2025 dollars, assuming tariffs were fully passed on to consumers.

However, getting that money back is complicated. While the Supreme Court ruled the tariffs illegal, it did not specify how the government should return the billions already collected from importers. Justice Brett Kavanaugh highlighted this point in his dissent. Economists describe the refund process as “highly unclear,” estimating it could take up to 18 months as cases move through the federal court system.

An international trade lawyer suggested that customers will likely have to wait for businesses to be reimbursed first, and then those businesses would reimburse customers. Meanwhile, major companies including Costco, FedEx, and L’Oreal are already suing the Trump administration to recover their payments. On a separate note, Melania Trump presiding over the UN Security Council has added another layer of controversy to an already turbulent political moment for the administration.

A recent report from a major financial institution found that nearly 90% of the tariffs’ economic burden fell on U.S. firms and consumers. A separate study published in October by a global financial analytics firm found that Trump’s tariffs cost businesses over $1.2 trillion in 2025, with at least two-thirds of that cost passed on to Americans.

After the Supreme Court ruling, Trump implemented new 15% levies globally, and administration officials are reportedly working on legal strategies to allow the government to keep its tariff revenue despite the court’s decision.