NM Among Coalition of States Calling on Congress to Pass Legislation Requiring Tariff Refunds

Albuquerque, NM – Attorney General Raúl Torrez today joined a coalition of 18 attorneys general urging Congress to pass legislation requiring the federal government to provide swift refunds for costs paid by businesses and consumers due to illegal tariffs imposed by the Trump administration.

On February 20, 2026, the United States Supreme Court ruled in favor of Attorney General Torrez and a multistate coalition, striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

United States Supreme Court Photo Courtesy U.S. Government

“Congress must act quickly to establish a fair, automatic refund system so that New Mexico small businesses and working families aren’t forced to navigate complex and costly processes just to recover money they never should have been charged in the first place,” said Attorney General Raúl Torrez. “Households in every corner of our state have been burdened by President Trump’s illegal tariffs, hitting low-income families the hardest and straining budgets that were already stretched thin.”

Businesses and consumers nationwide paid an estimated $166 billion in unlawful tariffs, driving up prices and disproportionately impacting lower-income households. The coalition is calling on Congress to require full reimbursement to importers, including interest, and to encourage those savings to be passed on to consumers.

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In April 2025, the Trump administration imposed sweeping tariffs under IEEPA. Attorney General Torrez and a coalition of states challenged the action in court, arguing the law does not grant the president authority to impose tariffs. The Supreme Court ultimately agreed and invalidated the policy. While the Court did not address refunds, the administration acknowledged in court filings that reimbursements would be required if the tariffs were struck down.

In a letter to congressional leadership, the coalition urged lawmakers to establish an automatic and uniform refund process. Federal agencies already have records of the tariffs paid, but current proposals would require businesses to navigate complex application systems or pursue litigation to recover funds.

The attorneys general warn that a burdensome, fragmented process would delay relief and disproportionately harm small businesses and individuals without the resources to pursue claims. Instead, they are calling for a streamlined system that ensures timely and equitable reimbursement.

The coalition also urged Congress to hold businesses accountable for passing tariff costs on to consumers. Companies that increased prices due to tariffs should pass refunds back to those who ultimately bore the cost. Lawmakers are also encouraged to consider additional relief for the most economically vulnerable, who were hit hardest by rising prices.

Joining Attorney General Torrez in sending this letter are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Vermont, Virginia, and Washington.

Copy of the Letter