US Returns $100 Billion in Tariff Money

Only the company that actually paid the tax at the border can claim the money back, so ordinary shoppers cannot apply for a refund. Theo Francis, a business reporter for The Wall Street Journal, told NPR (National Public Radio) that the process has worked smoothly for big importers, because they had staff ready to file claims immediately. Smaller businesses are much harder to track and may not have that capacity. Passing the money on to customers is voluntary. The delivery firms UPS (United Parcel Service), FedEx and DHL have promised to hand refunds back as they receive them. UPS expects about $5 billion in total, and FedEx says it is returning $800 million.

Economists doubt that families will get much back. The Tax Foundation estimates that the average household paid about $1,000 in extra import taxes, while Yale University's Budget Lab puts the yearly cost at roughly $1,100 under current law. Many retailers spread the extra cost across many products instead of listing it separately, so lawyers say customers who accepted the price have no claim. Several lawsuits have been filed, and Senator Elizabeth Warren is asking seven large retailers what they will do with it.