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Tariff Refunds Are Coming. Just (Probably) Not for You. | U.S. News Decision Points

Tariff Refunds Are Coming. Just (Probably) Not for You. | U.S. News Decision Points


The federal government this week launched a platform to process refund requests to comply with the Supreme Court ruling in late February that President Donald Trump’s signature tariffs were illegal. And you almost certainly won’t see a dime.

That’s because reimbursements are limited to “importers of record and authorized customs brokers” – the people who paid the tariffs directly. If a business passed that cost on to you in the form of a higher price, you may have paid for the tariff, but you did not pay it to the government.

The odds are, therefore, that the millions of Americans who paid more because of the duties won’t see any of the estimated $166 billion the feds collected from the tariffs Trump levied under the International Emergency Economic Powers Act (IEEPA). The administration said in a court filing that more than 330,000 importers had paid tariffs on more than 53 million import entries.

U.S. Customs and Border Protection says repayments (via the Consolidated Administration and Processing of Entries, or CAPE) “will generally be issued within 60-90 days following acceptance of the CAPE Declaration.”

What will businesses that get these refunds (plus interest) do with the money? Costco says “our commitment will be to find the best way to return this value through lower prices.” Implicitly, this means consumers won’t see a direct cash payout. FedEx has promised “if refunds are issued to FedEx, we will issue refunds for IEEPA tariffs paid to the shippers and consumers who originally bore those charges.”

Alex Durante, a senior economist at the Tax Foundation, a nonprofit that generally favors lower taxes, told The New York Times he did not expect businesses to exhibit an “immediate urge to pass all that back to consumers.”

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Trump Makes It Personal

Some of companies’ reluctance to refund consumers stems from uncertainty about whether the administration will try to impose new tariffs through a new mechanism.

Already, the federal government has opened investigations into key trading partners like China, Mexico and the European Union under the Section 301 of the Trade Act of 1974, which permits import taxes in response to foreign policies “burdening or restricting U.S. commerce.”

But a lot of the hesitation stems from the degree to which Trump has wielded power to reward his friends and punish his enemies. He has treated tariffs as a policy Swiss Army knife – to punish one country for trying a former leader he considers an ally, to retaliate against countries he says have “pillaged” America, to impel manufacturers to invest in the U.S. and many other justifications.

On Tuesday, he made it very clearly personal when asked by CNBC if part of the reason companies have not sought tariff reimbursements was “because there is a worry about, frankly, offending you. Would you find it offensive for them to try to collect a refund?”

“I think it’s brilliant if they don’t do that. If they don’t do that, they’ve got to know me very well. I’m very honored by what you just said,” the president replied. “If they don’t do that, I’ll remember them.”

Trump Makes It Personal, Part Two

Trump’s tariffs unleashed a lobbying boom as corporations sought carve-outs, according to the libertarian Cato Institute, a nonprofit critical of the import duties. The president made it clear on social media Tuesday that he relished his personal power.

“For me it began with a phone call from Tim at the beginning of my First Term. He had a fairly large problem that only I, as President, could fix,” Trump said.

“I was very impressed with myself to have the head of Apple calling to ‘kiss my a–.’ Anyway, he explained his problem, a tough one it was, I felt he was right and got it taken care of, quickly and effectively,” the president said. “That was the beginning of a long and very nice relationship.”

You can bet this hasn’t been lost on CEOs debating whether to seek tariff refunds. And what to do if they get them.



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