New York Attorney General Letitia James today co-led a coalition of 17 other attorneys general in urging Congress to pass legislation that would require the government to provide swift refunds for extra costs paid by businesses and consumers due to President Trump’s illegal tariffs. On February 20, the Supreme Court ruled in favor of Attorney General James and a coalition of 11 other states and struck down tariffs the Trump administration imposed under the International Emergency Economic Powers Act (IEEPA). Businesses and individuals nationwide have been charged approximately $166 billion in unlawful IEEPA tariffs, which resulted in higher prices that disproportionately strained low-income consumers’ finances. Attorney General James and the coalition are calling on Congress to pass new legislation that would require the Trump administration to reimburse importers for these illegal tariff charges with interest and encourage businesses that passed along direct tariff costs to consumers to reimburse their customers who ultimately bore the financial burden.
“New Yorkers were charged illegal taxes for months because of this administration’s tariff policy. Now they deserve a refund,” said Attorney General James. “These tariffs hurt businesses across our state and raised the cost of groceries, clothes, and other essentials. If this administration won’t do the right thing and give New Yorkers their money back, Congress must step in to get justice for consumers and businesses.”
In April 2025, President Trump imposed sweeping tariffs on countries across the globe by claiming he had the authority to do so under IEEPA. Shortly after, Attorney General James and a coalition of 11 other attorneys general sued the administration, arguing that IEEPA does not give the president the power to impose tariffs. On February 20, 2026, Attorney General James and the coalition won their lawsuit at the Supreme Court, which struck down the IEEPA tariffs. While the Supreme Court did not make a decision regarding tariff reimbursements, the administration had repeatedly committed in court filings that they would need to refund tariff costs with interest if the IEEPA tariffs were ruled unlawful.
The tariffs imposed significant costs on New York businesses and consumers throughout the state who have been charged an estimated $13.5 billion as a result of the president’s tariffs. In January 2026 alone, New York consumers paid over a billion dollars in tariff-driven price increases.
In a letter to House and Senate leadership, Attorney General James and the coalition are urging Congress to pass legislation requiring the administration to issue automatic tariff refunds as soon as possible. While the administration has indicated that importers would need to apply or sue for refunds, U.S. Customs and Border Protection (CBP) has a database of every illegal IEEPA tariff paid by American direct importers. The CBP has stated that refunds will only be available via a new direct deposit platform that only six percent of importers are currently registered for. The administration has also suggested that importers may need to navigate multiple refund processes depending on their shipment’s status. A refund process controlled by the administration would likely face delays and disadvantage small businesses and individuals that do not have the resources to navigate a complicated application process or sue for refunds. Attorney General James and the coalition are pushing for new legislation that could create an equitable, uniform, and fast process for all affected importers to be reimbursed for their tariff costs.
In addition, Attorney General James and the coalition urge Congress to hold accountable the businesses that directly passed on tariff costs to consumers and other businesses. Importers that raised prices due to tariff costs should pass the benefit of the refunds they receive to those who ultimately bore the financial burden of the administration’s illegal tariffs. Congress should also consider other ways to address the economic burden that the most financially vulnerable had to bear because of the administration’s illegal policy. As the attorneys general assert, prices of cheaper products rose faster than prices of more expensive goods as a result of the tariffs, disproportionately impacting low-income consumers.
Joining Attorney General James in sending this letter are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Vermont, Virginia, and Washington.
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