Connect with us

Politics

Tariffs Raised Consumers’ Prices, but the Refunds Go Only to Businesses

Published

on

Tariffs Raised Consumers’ Prices, but the Refunds Go Only to Businesses

You probably won’t receive a huge tariff refund.

The largest businesses stand to reap the biggest bucks as the Trump administration begins to return more than $166 billion in duties deemed illegal by the Supreme Court. Even though President Trump’s trade policies have led to higher prices for companies and consumers, many families aren’t in line to benefit directly from the coming refund checks.

The discrepancy is a reflection of the nation’s complicated import laws — and the ever-fluid nature of Mr. Trump’s trade war.

When the government applies taxes to foreign goods, it charges the firms and brokers that bring those items into the country. Those costs proved substantial during the president’s first year back in office, after he imposed a set of so-called reciprocal tariffs on nearly every U.S. trading partner.

But a majority of justices on the nation’s highest court struck down those duties in February, forcing the administration to pay back much of its coveted tariff revenue. As a result, the government owes refunds to the importers on its record books — meaning companies, in many cases — even if those businesses ultimately shifted the costs of Mr. Trump’s taxes on to their customers.

Advertisement

The beneficiaries may include retail giants, such as Costco, Gap, Home Depot, Kohl’s, Lowe’s, Target and Walmart. For some, analysts estimate that the refunds may total into the billions of dollars apiece, leaving them with a choice of whether to keep the money or share it with consumers, even if indirectly in the form of future discounts.

But almost none of those U.S. retailers commented by Thursday on their exact plans. Only Costco promised previously to pass savings on to customers, without explaining how, as the buy-in-bulk company faces one of a series of class-action lawsuits from furious Americans who believe they are owed refunds.

Heather Boushey, who served on the White House Council of Economic Advisers under President Joseph R. Biden Jr., described the refund process as a “windfall for businesses,” some of which foisted the tariffs on consumers.

“American families,” she added, “are certainly the losers.”

That could turn the tariff refunds into a divisive political issue, at a moment when a majority of voters have already expressed dissatisfaction with the president’s handling of the economy. Democrats have demanded that the administration return the money to families, but Mr. Trump has opposed returning the money at all — and he suggested this week that it would be “brilliant” if companies chose to forgo repayment.

Advertisement

The White House did not respond to a request for comment.

For more than a year, Mr. Trump has insisted that foreigners, not Americans, have shouldered the financial burden of his punishing global trade war. But the data has always told a more complicated story, one in which Americans have actually been left to pay a substantial toll.

One measure from the Federal Reserve Bank of New York, published in February, estimated that nearly 90 percent of the economic burden from Mr. Trump’s duties had fallen on U.S. companies and consumers. Its findings prompted an unusually harsh rebuke from the White House, which attacked the report’s economists for a conclusion at odds with the president’s beliefs.

Mr. Trump’s tariffs have also threatened to cut into families’ finances. Studying Mr. Trump’s latest rates in April, the Yale Budget Lab, a think tank, estimated that his policies could cause prices to rise as much as 1.1 percent in the short run, which would translate to an annual loss in income of about $1,500 per household. But it cautioned that its analysis rested on a set of assumptions about how Mr. Trump’s rates might evolve.

After Mr. Trump unveiled his highest duties last spring, companies in particular tried a variety of tactics to blunt the financial impact. They slowed imports, reduced staff, paused development, renegotiated deals with suppliers or absorbed the bite of tariffs into their bottom lines. And in some cases, they raised prices.

Advertisement

The costs of Mr. Trump’s trade war proved so staggering that some businesses sued in a bid to recover their money even before the Supreme Court ruled on whether the president had acted illegally. The official refund process commenced only on Monday, and by the government’s own count, the task ahead is monumental. By early March, there were more than 330,000 importers that had paid illegal tariffs on more than 53 million entries, customs officials said.

Some of the refunds may be significant. Walmart, for example, may stand to recover more than $10 billion in previously paid tariffs, according to an analysis this month from Citi Research. Target could be due more than $2 billion, Nike could receive $1 billion, and Home Depot could see a more than $500 million refund, the report found.

Paul Lejuez, a managing director at Citi Research who focuses on department stores, said the estimates did not include interest owed by the government on those refunds. He cautioned that the figures were imprecise calculations derived partly from companies’ financials.

Still, Mr. Lejuez said he expected retailers to face pressure soon from consumers, who want to see companies “show some signs of giving back.”

At least three, FedEx, UPS and DHL, have said they intend to share tariff refunds directly with customers. Frequently, the shipping giants pay tariffs as the official importers for shipped goods, but pass along the charges to the consumers, who placed the orders. Each said it would help customers recover money.

Advertisement

Other businesses have been more circumspect. At an April forum hosted by JPMorgan, John David Rainey, an executive vice president at Walmart, said he expected the big-box retailer to “certainly avail ourselves” of any refund process. But he offered few clues on Walmart’s plans for the money.

“We’ve absorbed a lot of that,” he told investors at the time, referring to the president’s tariffs. “In some cases, we had to pass along that price increase to customers.”

The lack of clarity has prompted some unsatisfied consumers to take matters into their own hands. In recent weeks, they have filed class-action lawsuits against FedEx, UPS and other brands, including Costco and Temu, the low-cost online marketplace, according to state and federal court records.

The lawsuits generally seek to recover money directly for shoppers, claiming that companies do not deserve to profit twice — first by raising prices on consumers, then from collecting federal tariff refunds plus interest.

“The consumer, for all intents and purposes, pays the tariff,” a set of lawyers argued in their lawsuit against Costco, filed in March. They asserted that the company’s pursuit of a refund “constitutes unjust enrichment at the expense” of customers.

Advertisement

David French, the executive vice president of government relations at the National Retail Federation, a lobbying group, said it would be difficult for companies to try to return money directly to consumers because executives cannot simply look at a tariff and “pull out a specific price increase from a retailer’s array of goods.”

But he said he expected some companies to try to give back in other ways. “It may not be a specific item on a receipt that says, ‘This is a tariff refund,’ but you’re going to see the money returned to customers in many cases,” Mr. French said.

Echoing the sentiment last month, Ron M. Vachris, the chief executive of Costco, told shareholders that his retailer would try to “find the best way to return this value to our members through lower prices and better values.” He also said that Costco did not “pass the full cost” of tariffs on to its members, and that calculating the “exact impact” of duties on prices was difficult.

Mr. Trump’s tariffs are expected to change again, as the White House looks to resurrect its previous sky-high rates using another set of trade powers. The president has already imposed a temporary, across-the-board tariff of 10 percent on most imports, using a provision of law that has been challenged in court.

The expected losses from tariffs still represent a sharp departure from the gains that Mr. Trump had once promised to Americans. Initially, the president had said he would return some of the money collected from his duties to families in the form of a rebate check. The idea never gained much traction even among Republicans in Congress, yet the president still pledged repeatedly to offer “a nice dividend to the people,” as he sought to shore up support for his economic agenda.

Advertisement

Mr. Trump does not appear to have mentioned the idea since losing at the Supreme Court, yet many Democrats have started to demand that his administration compensate families.

On Thursday, a group of Democratic lawmakers including Representatives Steven Horsford of Nevada and Suzan DelBene of Washington asked the top executives of Walmart, Target and other companies to ensure the coming tariff refunds “reach those who ultimately bore those costs.”

“American families felt the impact of these tariffs in everyday life,” they wrote in a letter. “The question of how refunds are distributed is one of corporate accountability and economic fairness.”

Politics

C.I.A. Director Visits Cuba as Tensions Rise and Island Runs Out of Oil

Published

on

C.I.A. Director Visits Cuba as Tensions Rise and Island Runs Out of Oil

The C.I.A. said Mr. Ratcliffe had met with Raúl G. Rodríguez Castro, known as “Raulito” or “El Cangrejo” (the Crab), the influential grandson of former president Raúl Castro. Mr. Ratcliffe also met with Lázaro Álvarez Casas, the minister of the interior, as well as the head of Cuba’s intelligence services, a C.I.A. official said.

At the same time, federal prosecutors in Miami were working toward securing an indictment of the elder Mr. Castro, who remains a force in the country’s politics, according to several people familiar with the matter. The scope of the indictment and the number of defendants is being debated, but it could include drug trafficking charges and accusations connected to Cuba’s downing in 1996 of planes run by the humanitarian aid group Brothers to the Rescue, two of the people said.

Mr. Ratcliffe arrived in Cuba the day after Vicente de la O Levy, the minister of energy and mines, announced that oil supplies for domestic use and power plants had been exhausted.

“We have absolutely no fuel oil, absolutely no diesel,” he said. “In Havana, the blackouts today exceed 20 or 22 hours.”

The lack of oil has forced people to rely on charcoal or even wood to cook, and some people have taken to the streets, banging on pots and pans to express their frustration.

Advertisement

The Cuban government has been grappling with a severe energy crisis for more than two years because of crumbling infrastructure and a dwindling oil supply from Venezuela, its longtime benefactor.

Venezuelan fuel stopped flowing to Cuba entirely in January, after the United States seized Venezuela’s leader and took control of its oil industry. Later, the Trump administration imposed an effective blockade barring all foreign oil from reaching Cuba, which had also received shipments from Mexico.

A delivery of an estimated 730,000 barrels of oil from Russia last month permitted by the Trump administration provided a brief reprieve.

The administration also has been working on the Castro indictment for months. The effort is being led by Jason A. Reding Quiñones, a Trump ally who serves as the U.S. attorney for the Southern District of Florida.

The Cuban government said the United States had requested Thursday’s meeting. Cuban officials stressed that their country did not constitute a threat to U.S. national security and should not be included on a list of state sponsors of terrorism, Cuba’s state-controlled newspaper, Granma, reported.

Advertisement

“Once again it was made clear that the island does not harbor, support, finance or permit terrorist or extremist organizations; nor are there any foreign military or intelligence bases on its territory, and it has never supported any hostile activity against the U.S. nor will it allow any action to be taken from Cuba against another nation,” the Cuban government said.

Continue Reading

Politics

Trump touts ‘fantastic trade deals’ in final Xi meeting amid tariff standoff

Published

on

Trump touts ‘fantastic trade deals’ in final Xi meeting amid tariff standoff

NEWYou can now listen to Fox News articles!

President Donald Trump held his final meeting with Chinese President Xi touting a big win on one of the central focuses orf the high-stakes summit after the two leaders held a bilateral tea at the Zhongnanhai compound.

“This has been an incredible visit,” Trump said to reporters. “I think a lot of good has come of it, and we’ve made some fantastic trade deals. Great for both countries.” 

The announcement comes against the backdrop of a yearslong tariff standoff between the U.S. and China, with Trump arguing aggressive duties are needed to force fairer trade terms while Beijing has repeatedly pushed back. While it is unclear which deals were reached, it was shared that China agreed to order 200 Boeing jets.

TRUMP MEETS US AMBASSADOR TO CHINA AS TENSIONS FLARE AHEAD OF XI SHOWDOWN

Advertisement

Trump said summit produced “fantastic trade deals.” (Evan Vucci/Pool Reuters via AP)

U.S. Ambassador to China David Perdue, Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, War Secretary Pete Hegseth, and U.S. Trade Representative Jamieson Greer were present for the meeting.

America’s top business leaders traveled with Trump to Beijing and met with Premier Li Qiang Thursday to discuss U.S.-China economic and trade cooperation.

“China is willing to work with the United States to implement the important consensus reached by the two heads of state, strive for more positive outcomes, achieve mutual success and promote common prosperity, and better benefit the people of both countries and the world,” reads a press release about the meeting from the Chinese Ministry of Foreign Affairs.

TRUMP AND CHINA CLOSE IN ON TRADE DEAL AFTER PRODUCTIVE TALKS, BESSENT SAYS

Advertisement

While it is unclear which deals were reached, it was shared that China agreed to order 200 Boeing jets. (Mark Schiefelbein/AP)

The ministry stressed that both countries should “meet each other halfway” and “safeguard bilateral economic and trade relations.”

The White House and Chinese Embassy in Washington did not immediately respond to Fox News Digital’s requests for comment on the matter.

During an interview Thursday with Fox News’ Sean Hannity, Trump said China was interested in investing “hundreds of billions of dollars” alongside the American business leaders visiting Beijing.

“Those business people are here to make deals and to bring back jobs,” Trump said.

Advertisement

TRUMP PUSHES XI ON TRADE AFTER SUPREME COURT RULING DENTS KEY CHINA PRESSURE TOOL

A major piece of Trump’s “America First” agenda has focused on leveling the global trade playing field by holding other countries accountable for trade deficits. One of his first moves after returning to office was rolling out the “Liberation Day” tariffs in April 2025, which were designed to serve as leverage in trade negotiations while also generating new revenue.

“This has been an incredible visit. I think a lot of good has come of it, and we’ve made some fantastic trade deals. Great for both countries, ” said Trump. (Mark Schiefelbein/AP Photo)

Tariffs have been at the center of Trump’s China strategy since his first term, when he imposed duties on Chinese imports and Beijing retaliated with tariffs of its own. The fight has remained one of the defining pressure points in the relationship between the world’s two largest economies. 

Trump’s first visit in 2017 produced more than $250 billion in announced commercial deals and cooperation pledges, but it did not prevent trade relations from deteriorating in 2018.

Advertisement

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Most notably, Trump announced a $12 billion deal for cellphone chips from Qualcomm and $37 billion for Boeing commercial jets, AP reported at the time.

Trump said that Xi and his wife will visit the U.S. in September. 

Continue Reading

Politics

Commentary: Who won and who lost in Thursday night’s California gubernatorial debate? Our columnists weigh in

Published

on

Commentary: Who won and who lost in Thursday night’s California gubernatorial debate? Our columnists weigh in

For the sixth and final time before votes are counted, the leading contenders for California governor gathered Thursday night for a televised debate, this one a 90-minute session in San Francisco.

Times columnists Gustavo Arellano, Mark Z. Barabak and Anita Chabria absorbed the rhetorical blows, followed the heated back-and-forths and took in each and every one of the candidates’ myriad policy prescriptions. Here’s their assessment:

Arellano: Near the end of the debate, co-moderator and San Francisco Examiner editor-in-chief Schuyler Hudak Prionas groaned as candidates talked over each other while trying to answer a question that was supposed to elicit a yes or no response.

That’s pretty much how California voters have reacted to this primary.

In an era where politics are far too often about choosing the least worst option, voters in this election are left with the political version of the Angels baseball team.

Advertisement

No candidate has polled higher than 20-some percent — a testament to how many are in the running, but also an indication that none of them has truly captured the zeitgeist of today’s California.

This year’s debates have done little to catapult anyone to the top, and tonight was more of the same. I still don’t know who I’m going to vote for, and no one inspired me to side with them. No one offered a clear vision of how they would pull Californians out of a spiritual malaise that has so many of us leaving the state, or thinking about leaving.

Instead, what I heard too many of the candidates evoke was the glories of the past — their past.

Antonio Villaraigosa’s closing remarks made a mantra out of “Dream with me,” a slogan he used back when he was L.A. mayor — that was 13 years ago.

Xavier Becerra bragged about how he stood up to President Trump as California attorney general — that was five years ago.

Advertisement

Katie Porter pulled out a white notebook with something written on it and directly challenged Becerra to answer a question — a callback to her time as a congressmember grilling people on Capitol Hill with a whiteboard and a marker, which she first made famous seven years ago.

The two Republicans, Riverside County Sheriff Chad Bianco and conservative commentator Steve Hilton, spoke of a halcyon California destroyed by feckless Democrats and vowed a return to those days.

The only candidates who didn’t live in the past were San José Mayor Matt Mahan and hedge fund billionaire Tom Steyer — but they seemed particularly out of their league, with Steyer too often looking down at notes instead of speaking off the cuff with his well-rehearsed populist pluck.

The word “nostalgia” first emerged to describe what doctors back then considered a malady, thinking it unwise to long for the past. It’s a concept historically antithetical to California, long boosted as the land of today and tomorrow by everyone from the Mission fathers to orange barons, developers to politicians. Indeed, nostalgia has sometimes been a dangerous factor in California politics, unleashing the Spanish fantasy heritage movement, Prop. 13, Prop. 187 and all sorts of other nonsense.

The two candidates who advance to the general election would be wise to offer Californians a hope for the future that doesn’t call back to our yesterdays. For now, the only real winners are the political consultants, and the only real losers are Californians, because we still don’t know for sure that any of the candidates can make things better.

Advertisement

All we can expect is that they’ll turn things for the worse.

Barabak: A popular expression — which Steyer mentioned — defines insanity as doing the same thing over and over and expecting a different result.

By that measure, was the audience for Thursday night’s throwdown insane? Masochistic? Or a group of high-minded, dutiful, quite-conscientious California voters?

The leading gubernatorial candidates have been at this so long that they’re like actors in a stage troupe, delivering well-rehearsed lines, or an old band getting together to play their greatest hits, though far less melodious.

Among those reprising familiar roles were Steyer as the boastful billionaire; Bianco as the angry white avenger; Hilton as the chipper doomsayer; Mahan as the kid brother insinuating his way into the conversation; Porter as the left-wing tribune promising a progressive Valhalla; and Villaraigosa as the old political war horse.

Advertisement

Once more, Becerra was the focal point of attacks, befitting his newfound status as the candidate to beat. “This is what happens when you take the lead in polls,” he rightly noted.

And so rivals again assailed Becerra’s performance as state attorney general and Health and Human Services secretary in the Biden administration. They accused of him being a shill for Big Oil. They tried, implying guilt-through-association, to rope Becerra into the scandal involving his former aides who embezzled from a dormant campaign account.

(Becerra, crisper and more lively than he’s previously been, noted that prosecutors in the case have described him as a victim and not a perpetrator or co-conspirator.)

It’s hard to see all the jostling and thrown elbows making a huge difference. The promises made and attacks scattered like buckshot on the San Francisco soundstage all seem much less important than the numbers that show up in opinion polls between now and Election Day.

Many Democrats, spooked by the prospect of their party being frozen out in June’s top-two primary, have been clinging to their ballots, intending to vote at the last moment for whichever Democrat appears likeliest to finish first.

Advertisement

In that way, the race seems to be shaping up as less a competition than a self-fulfilling prophecy. And Thursday night’s performance, while not wholly irrelevant, was just another television rerun broadcast to a less-than-mass audience.

Chabria: Here’s what I’ll say about Thursday night: It was a debate. The old-school kind where everybody is mostly well-behaved and polite, and the audience scrolls on their phones to stay awake.

The candidates themselves seemed low-energy, even with their jabs — which were largely directed at Becerra, as Mark said.

But no sparks also means we have more clarity. Barring an Eric Swalwell-style blow-up, the top three — Becerra, Steyer and Hilton — are really the only true contenders.

But I’ll give a shout-out to Porter, who had her best performance to date with answers that were clear and laid out policy with detail. Still, I fear it’s too little, too late.

Advertisement

Becerra, on the other hand, seemed subdued to the point of flat (sorry, Mark, he came off crisp like a week-old apple to me) often relying on the line that he sued Trump more than a hundred times as attorney general of California during Trump’s first term. I’m not sure that’s inspiring, though it did lead to some court victories.

Granted, Becerra has had a hard week, with a gaffe with a reporter that went viral and a plea deal by a former aide in that case of money misappropriated from his dormant campaign account. It’s not clear yet if voters care about either of those glitches — but if they stick in people’s minds, that could open a path for Steyer to scrape up the small margin he needs to get through the primary.

But Thursday night also did little to help Steyer’s cause — or hurt it. He made some clear, forceful points that positioned him as the changemaker progressive, especially around his policies on moving away from fossil fuels. He also had some convoluted answers that didn’t land. He didn’t give undecided voters much to work with.

I’ll end with one answer from Hilton that women should pay attention to: He said that if elected, he would allow California abortion providers to be extradited to states such as Louisiana to face criminal charges for mailing abortion medications.

Women across the U.S. now must rely on states such as California for any access to abortion care. Hilton’s position is not just bad for California but presents a risk to women everywhere.

Advertisement

For me, that answer should disqualify him for the highest office in our pro-choice state.

Continue Reading
Advertisement

Trending