How would the government even be able to determine if a business increased product prices due to tariffs vs other factors, or even if the business increased prices at all? What if the product is a loss leader and the company was fine just eating the expense? Or what about a nefarious company who manufacturers their stuff in Canada but used "tariffs" as an excuse to increase prices? What would they be refunded from?
So if I'm the owner of Uncle Billy Bobs Autoparts and I ship from Madeupcountry. I billed you $500 extra for some new car part. The US government refunds me on the tariffs they charged me to import my product to you, and now your taxes is going into my refund. Who wins in this scenario? They're effectively giving every country a free bonus. I wouldn't be surprised if some people got scammed by the tariffs by being overcharged.
There's no serious paper trail to any of this to meaningfully return lost revenue to the American consumer, I would rather not waste tax dollars on refunds.
I guess the only "winners" are maybe businesses that didn't pass on the revenue loss on to the consumer? But how do you even correctly refund those businesses?
Gee, I don't know, receipts ?
Also simply revenue on the business end
One possibility would be for businesses to return the fraction of the tariff paid by customers to future customers by offering the items affected with a negative tax until the refund is used up.
Ha ha, that's a good one. I have yet to hear about reduced profits anywhere. Instead, as I said in another comment, I have actual physical receipts with the additional tariff cost (itemized!) in a pile on my workshop (which I'll never see refunded).
You could ask for a tariff refund from those suppliers.
The invoices give you slam dunk evidence that you paid that amount in tariffs, and the supreme court decision says the payment was illegally collected, so seems like an easy win for you.
As someone who prices and sells labor and material for a living, nobody ate increased tariffs. They were passed along to the ultimate consumer of the tariffed product. Everyone was facing the same tariffs so they’re all incentivized to pass the cost along, line iteming the tariffs on the invoice would make it abundantly clear. I passed along all increased costs with a note on my proposal that said “Any and all additional tariffs will be paid for by the customer.”
The Bottom Line: While the goal of a tariff is often to protect domestic industry, the immediate effect is almost always a "consumption tax" paid by the person at the end of the line: you.
> That's not how capitalism works.
and
That's not how tariffs work in a capitalist economy.
I then said that's not how tariffs work in a capitalist economy when you claimed consumers didn't get the costs passed down to them, which again, it sure as shit did.
I've said one single thing this entire time. The costs of these tariffs are paid for by me, you, and every other consumer, not the businesses, because capitalism, profits, shareholder value, ceo pay packages, whatever.
I've just had to say that one thing multiple different ways as you try to mental ninja me for no reason about facts. I don't care what you think, the Fact is, consumers eat the cost of tariffs with higher prices, which look around, is happening.
It doesn't need to be a perfect solution, you could just give everyone a flat refund similar to class action payouts.
I mean the importers were the ones who paid the duties. It's not a given they passed it on, and if it was then in many cases it was spread out. That is importer paid for one container of items, which in turn got sold to individuals which the government has no record of.
If you ordered delivery by say FedEx and they paid the duty and passed it on to you, you should have a reasonable case to get it refunded from FedEx when they get the money back. Ideally they handle it automatically since they have all the necessary details.
For manufacturing companies it's less clear, as some might have swallowed all or some of the duties, and multiple components might have been affected by different rates etc.
Will be interesting to see how companies who passed it on will handle this, given it's a massive PITA to do anything but screw over their customers.
I didn't have to deal with it, but from other comments, most of the international shippers also charged a hefty fee to broker the tarrifs. Expect not to get that refunded.