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Thompson commends Supreme Court ruling striking down Trump tariffs, announces bill to give Americans refunds

By Lake County News Reports | Feb. 21, 2026

On Friday, in response to the Supreme Court’s 6-3 ruling striking down the president’s unlawful tariffs, Rep. Mike Thompson greeted the news with plans of his own to address the impacts of tariffs on Americans.

“This ruling is a win for the American people. For over a year, hardworking families and small business owners paid the price for the president’s trade war — literally. Experts report that the average family in our district paid over $1,900 more last year thanks to this President’s unlawful tariffs. Not to mention this trade war has damaged our country's important relationships with our closest allies,” said Thompson.  

“The president never had the authority to put these tariffs in place without Congress’ approval, and I am glad that the Supreme Court chose to uphold the rule of law today. As a member of the Litigation Task Force and the ranking Member of the Ways and Means Subcommittee on Tax Policy, I remain laser-focused on lowering costs for Americans, compensating people for the costs of this tariff war, and ensuring we hold this administration to account for their harmful actions,” he continued. 

Thompson leads two bills to compensate families and small business owners for the losses they experience due to the Trump Trade War. 

Rep. Thompson’s Illegal Tariff Refund Act, introduced Friday, compensates Americans for the higher prices they paid due to the Trump Trade War. 

The legislation creates an “individual tariff refund credit” that would return money from unlawful tariffs directly to American households instead of corporations. 

If a court strikes down a tariff and orders repayment, the Treasury Department would distribute the funds as IRS rebates calculated per person in each household. 

The premise is straightforward: tariffs operate economically like a tax on consumers through higher prices, so refunds should flow back to families who actually bore the cost.

The bill also includes a guardrail aimed squarely at corporate windfalls. Large companies would face a 100 percent excise tax on tariff refunds unless they can demonstrate they did not pass the tariff costs onto consumers. 

Specialty crop growers and wine producers were also hit hard by these tariffs. With the enactment of Trump’s tariffs and trade barriers, our agricultural communities suffered significant losses while foreign competitors filled the gap left by declining U.S. exports, strengthening their position while American producers are struggling with new market uncertainties. 

That’s why Rep. Thompson introduced The Specialty Crop & Wine Producer Tariff Relief Act, which provides direct support to specialty crop growers and wine producers facing economic losses from tariffs. 

The bill creates a direct pay program through USDA for specialty crop growers and wine producers experiencing “covered losses” caused by increased foreign tariffs. It also allows USDA to purchase surplus specialty crops for use in nutrition programs such as school meals and SNAP.

Thompson represents California’s Fourth Congressional District, which includes all or part of Lake, Napa, Solano, Sonoma and Yolo counties.