"Vote better next time I suppose" is the message to the electorate, because it would be impossible to return the funds to them due to diffusion.
The best you could do is perhaps model the additional per household cost (which has been done) and issue them checks from the Treasury (stimulus check style), but who is going to pay for it? The taxpayer! There is no way to incur this economic cost on the people who incurred the harm (this administration). You could potentially get the funds back from companies through higher corp taxes. Is Congress going to pass that? Certainly not. Them the breaks of electing Tariff Man. Does exactly what it says on the tin.
> ....I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN
9:03 AM · Dec 4, 2018
Historical lesson in governance failure. Can't change history, the outcome is regrettable, we can only try to do better in the future. Onward. Let the lesson not be for naught.
> it would be impossible to return the funds to them due to diffusion.
It's very much possible if money isn't (or only partially) returned to the companies and used for targeted investment benefiting the public. Of course this won't help much if government spending priories and legislative objectives aren't revised, but that's unlikely because there's nobody in government or academia with anything close to a good idea about it.
If there was a functioning DOJ, they could bring RICO charges against the whole administration, their business associates and involved family members, all of whom are co-conspirators to corruption of government and bribery. But that would never happen, of course, because Americans don't riot en masse and demand accountability for corrupt government officials.
There must be a mind boggling amount of profit going to these importers to get basically all of the tariff proceeds back on already completed transaction with zero expectation that it be paid back to the people bearing the cost.
I can't imagine their margins are usually very high, the tariff rates are astronomical compared to their usual margins. Hopefully someone here has more information than me because to my naive mind this basically absolutely explodes the free cash reserves of importers from high volume high tariff countries creating a lottery winnings for a business sector of epic proportions rarely seen.
> the consumers paid the price of the tariffs. These refunds are going to businesses who just passed the price along
This story is often repeated, especially by businesses advocating against taxes, but transparently false if you think about it: Taxes and tariffs are costs for a business, no different than an increase in the cost of hops for Budweizer, or an increase wholesale cost of M&M's for the corner store.
When hops' cost increases, Budweizer doesn't just pass it along to consumers; the corner store also doesn't just raise the price of M&Ms. Everyone knows that if you raise the price, fewer people buy your beer/candy and your profits may drop overall, while your scarce assets (money) will be sunk in products sitting on the shelves when you need those assets elsewhere. They can't just raise prices arbitrarily: if Budweizer charged $20/can they'd have zero profit.
As we know well, some companies even sell products at a loss because that is the best outcome for their profits - e.g., car manufacturers, rather than have a hundred million in assets 'lost' indefinitely to unsold cars, and having no pricing that is more profitable, will sell at a loss to get what they can out of it. The clothing store puts last season's unsold clothes on sale around now.
In economics the tradeoff between price and quantity sold is called the demand curve. There's a theoretical point on the curve, hard to identify precisely in reality, which maximizes your profit.
So when costs increase, businesses still want to maximize profits: They decide how much of extra cost to pay directly out of their profits, and how much to raise the price and have consumers 'pay' for it. The consumers don't always go along with the plan: For products that are easy to forgo, such as M&Ms, consumers won't pay much more and businesses tend to eat cost increases. For products that are more unavoidable, such as gas for your car, consumers are compelled to pay more (until they buy more fuel efficient cars, or take a bus or ride a bicycle).
The CBO estimates [1] that foreign exporters bear 5% of the burden of the tariffs, with American consumers bearing the remaining 95%:
> [T]he net effect of tariffs is to raise U.S. consumer prices by the full portion of the cost of the tariffs borne domestically (95 percent)
This is a serious document written by a bunch of serious economists. You can find a list of them at the bottom of the page. That you have written their conclusion off as "transparently false" should give you pause.
I ordered a soccer team jersey from UK which cost $100. I had to shell out $75 in tariffs. So yes while what you are saying might apply to businesses, there is a real cost paid by consumers as well.
Both can be true. On competitive environments it's harder to pass along costs to consumers, but when a supply pressure is unilaterally applied the competitive pressure to eat the increased costs goes away and is more easily passed along to consumers.
There's a bit of truth to what you say, but also truth in the fact ultimately the consumer pays for everything. You're right that in effect the business might absorb the loss to profit, but ultimately ~100% of the revenue is from receipts from customers in the business model you proposes of things like selling a simple business of merely producing and selling M&Ms.
Thus both of you are really right. The tariff is paid 100% by consumer receipts if you track the flow of money, but this might also still be reflected in reduced profits. The actual flow of money might be $X revenue from customers, out of the $X paid from customers $Y is taken out for tariffs. $Y comes from the dollars received from customers but still reflects lowered potential profit if $X rose by less than $Y after tariffs started.
Prices will keep increasing, as US consumer spending was resilient in 2025 and kept going up irrespective of tariffs. Consumers can be charged even more than previously assumed.
But I was certain that now that the tariffs were overturned the merchants would voluntarily lower their prices to pre-tariff level and not just hope the consumer doesn't notice that the only direction prices go is up.
No the consumers paid the price of the tariffs. These refunds are going to businesses who just passed the price along
"Vote better next time I suppose" is the message to the electorate, because it would be impossible to return the funds to them due to diffusion.
The best you could do is perhaps model the additional per household cost (which has been done) and issue them checks from the Treasury (stimulus check style), but who is going to pay for it? The taxpayer! There is no way to incur this economic cost on the people who incurred the harm (this administration). You could potentially get the funds back from companies through higher corp taxes. Is Congress going to pass that? Certainly not. Them the breaks of electing Tariff Man. Does exactly what it says on the tin.
> ....I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN 9:03 AM · Dec 4, 2018
https://x.com/realDonaldTrump/status/1069970500535902208 | https://archive.today/BBEmH
Historical lesson in governance failure. Can't change history, the outcome is regrettable, we can only try to do better in the future. Onward. Let the lesson not be for naught.
> it would be impossible to return the funds to them due to diffusion.
It's very much possible if money isn't (or only partially) returned to the companies and used for targeted investment benefiting the public. Of course this won't help much if government spending priories and legislative objectives aren't revised, but that's unlikely because there's nobody in government or academia with anything close to a good idea about it.
4 replies →
If there was a functioning DOJ, they could bring RICO charges against the whole administration, their business associates and involved family members, all of whom are co-conspirators to corruption of government and bribery. But that would never happen, of course, because Americans don't riot en masse and demand accountability for corrupt government officials.
3 replies →
You don't think Target is going to send me a check? I had assumed it would arrive by mail in the next few days.
With Donald Trump's signature right across the bottom, right?
1 reply →
There must be a mind boggling amount of profit going to these importers to get basically all of the tariff proceeds back on already completed transaction with zero expectation that it be paid back to the people bearing the cost.
I can't imagine their margins are usually very high, the tariff rates are astronomical compared to their usual margins. Hopefully someone here has more information than me because to my naive mind this basically absolutely explodes the free cash reserves of importers from high volume high tariff countries creating a lottery winnings for a business sector of epic proportions rarely seen.
> the consumers paid the price of the tariffs. These refunds are going to businesses who just passed the price along
This story is often repeated, especially by businesses advocating against taxes, but transparently false if you think about it: Taxes and tariffs are costs for a business, no different than an increase in the cost of hops for Budweizer, or an increase wholesale cost of M&M's for the corner store.
When hops' cost increases, Budweizer doesn't just pass it along to consumers; the corner store also doesn't just raise the price of M&Ms. Everyone knows that if you raise the price, fewer people buy your beer/candy and your profits may drop overall, while your scarce assets (money) will be sunk in products sitting on the shelves when you need those assets elsewhere. They can't just raise prices arbitrarily: if Budweizer charged $20/can they'd have zero profit.
As we know well, some companies even sell products at a loss because that is the best outcome for their profits - e.g., car manufacturers, rather than have a hundred million in assets 'lost' indefinitely to unsold cars, and having no pricing that is more profitable, will sell at a loss to get what they can out of it. The clothing store puts last season's unsold clothes on sale around now.
In economics the tradeoff between price and quantity sold is called the demand curve. There's a theoretical point on the curve, hard to identify precisely in reality, which maximizes your profit.
So when costs increase, businesses still want to maximize profits: They decide how much of extra cost to pay directly out of their profits, and how much to raise the price and have consumers 'pay' for it. The consumers don't always go along with the plan: For products that are easy to forgo, such as M&Ms, consumers won't pay much more and businesses tend to eat cost increases. For products that are more unavoidable, such as gas for your car, consumers are compelled to pay more (until they buy more fuel efficient cars, or take a bus or ride a bicycle).
The CBO estimates [1] that foreign exporters bear 5% of the burden of the tariffs, with American consumers bearing the remaining 95%:
> [T]he net effect of tariffs is to raise U.S. consumer prices by the full portion of the cost of the tariffs borne domestically (95 percent)
This is a serious document written by a bunch of serious economists. You can find a list of them at the bottom of the page. That you have written their conclusion off as "transparently false" should give you pause.
[1] https://www.cbo.gov/publication/62105#_idTextAnchor050
2 replies →
I ordered a soccer team jersey from UK which cost $100. I had to shell out $75 in tariffs. So yes while what you are saying might apply to businesses, there is a real cost paid by consumers as well.
Both can be true. On competitive environments it's harder to pass along costs to consumers, but when a supply pressure is unilaterally applied the competitive pressure to eat the increased costs goes away and is more easily passed along to consumers.
There's a bit of truth to what you say, but also truth in the fact ultimately the consumer pays for everything. You're right that in effect the business might absorb the loss to profit, but ultimately ~100% of the revenue is from receipts from customers in the business model you proposes of things like selling a simple business of merely producing and selling M&Ms.
Thus both of you are really right. The tariff is paid 100% by consumer receipts if you track the flow of money, but this might also still be reflected in reduced profits. The actual flow of money might be $X revenue from customers, out of the $X paid from customers $Y is taken out for tariffs. $Y comes from the dollars received from customers but still reflects lowered potential profit if $X rose by less than $Y after tariffs started.
2 replies →
And that fee was likely passed almost directly onto the consumer. I think I read... 90%?
Prices will keep increasing, as US consumer spending was resilient in 2025 and kept going up irrespective of tariffs. Consumers can be charged even more than previously assumed.
But I was certain that now that the tariffs were overturned the merchants would voluntarily lower their prices to pre-tariff level and not just hope the consumer doesn't notice that the only direction prices go is up.