US Refunds $100 Billion in Tariffs to Companies

Only the importer of record — the business that actually paid the duty — can reclaim money from CBP, so ordinary shoppers have no direct route to a refund. Theo Francis, a business reporter for The Wall Street Journal, told NPR (National Public Radio) that the process has run smoothly for large importers, which had the staff to file claims immediately; smaller firms are far harder to track and may lack that capacity. Whether any of the money reaches consumers is voluntary. The delivery firms UPS (United Parcel Service), FedEx and DHL have pledged to pass refunds on as they receive them; UPS expects about $5 billion in total, and FedEx says it is returning $800 million to shippers and customers. Amazon has identified only a limited set of circumstances in which it can trace charges to individual buyers.

Economists doubt that households will recover much. The Tax Foundation puts the extra import duties borne by the average household at about $1,000, while Yale University's Budget Lab estimates household tariff costs of roughly $1,100 a year under current law. Many retailers spread those costs across a range of products rather than itemising them. Trade lawyers say shoppers who accepted a stated price have no legal claim, although class-action suits have been filed against Amazon, Costco, Nike and Walmart. Senator Elizabeth Warren is investigating seven large retailers over what they will do with the money. Francis said the price effects are hard to predict: the struck-down tariffs are gone, but others remain or have been added, and several companies have told investors the new tariffs roughly replace the old ones.