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Two prominent Democratic governors are calling for the Trump administration to refund billions of dollars to state residents after the Supreme Court ruled that the president’s tariffs were imposed unlawfully.

Some shit you should know before you dig in: In case you missed it, last week the Supreme Court ruled against President Trump’s global tariffs, finding in a 6–3 decision that his use of the International Emergency Economic Powers Act (IEEPA) to impose them exceeded his constitutional authority. Critics argued that Trump’s tariffs were essentially an unconstitutional tax on Americans that was not authorized by Congress. The justices held that IEEPA, a 1977 law designed to let presidents regulate economic transactions during national emergencies, does not authorize the executive branch to levy tariffs, a power the Constitution assigns to Congress. The ruling declared the IEEPA-based tariffs unconstitutional, but President Trump has since reimposed global tariffs under a different statutory authority, arguing that this alternative legal mechanism is well established, battle-tested, and fully legitimate.

PRITZKER HOCHUL

What’s going on now: In a notable development, New York Governor Kathy Hochul and Illinois Governor JB Pritzker are pressing the Trump administration to return billions they say were unlawfully collected from their residents. Hochul is demanding roughly $13.5 billion be refunded to New Yorkers, citing estimates that the average household paid an additional $1,751 due to the tariffs. She has characterized the tariffs as a direct tax on consumers, small businesses, and farmers, arguing they drove up grocery prices, equipment costs, and overall household expenses.

Hochul has also pointed to the strain on New York’s agricultural sector and previously proposed a $30 million state relief plan to help farmers cope with higher input costs tied to the tariffs.

Pritzker is making a similarly aggressive push in Illinois, publicly issuing what amounts to an invoice to the president demanding $1,700 per household, totaling more than $8.6 billion statewide. In a letter shared publicly, he argued the tariffs “wreaked havoc” on farmers, angered international allies, and sent grocery prices soaring. Pritzker warned that if the administration does not comply, Illinois would pursue legal action.

This all comes as the White House has pushed back sharply, criticizing the governors and suggesting that states should focus on their own tax and regulatory policies rather than demanding federal reimbursements. The Trump administration also maintains that tariffs are paid by foreign countries, not Americans, which many argue is not true.

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