Businesses are getting tariff refunds. Why aren't consumers? : NPR
NPR • • business
Key Points:
- Sandra Alonso paid an extra $3,500 for a powered wheelchair due to a 145% tariff on Chinese goods, but she cannot get a direct refund because the government returns tariff refunds only to importers, typically businesses.
- Shipping companies like UPS, FedEx, and DHL have pledged to pass tariff refunds directly to customers since they explicitly charged tariff fees, making it legally obligatory to return those funds.
- Retailers, however, often incorporated tariff costs into overall prices without itemizing them, making it difficult or impossible to refund customers for tariffs paid on individual products.
- Some large retailers, such as Home Depot and Walmart, plan to use tariff refunds to offset other expenses or lower prices broadly rather than issue direct customer refunds, while companies like Costco and Nintendo face lawsuits demanding refunds.
- Experts criticize the tariff system as a regressive tax on consumers and stress that the core issue is the illegal imposition of tariffs by the government, which created a complex refund situation.
