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

145 points by duxup

by Joeri

3 subcomments

Actually, a sizable chunk of the refunds will go to companies like Cantor Fitzgerald, the company of the commerce secretary Howard Lutnick (or his sons, which is the same thing), that bought the tariff refund rights last year for 20% of the refund value. While Lutnick was ostensibly pro-tariff, his company was betting against the tariffs being legal, and now will collect refunds paid by the American taxpayer.
So in reality, the tax payer is on the hook twice: once for paying the tariffs through increased prices, and once for the debt created by the people disbursing refunds to themselves.

by duxup

0 subcomment

by skybrian

4 subcomments

Also true of any other refund a business might get for any other expense the business was overcharged for. Not sure why anyone is surprised.

by orev

7 subcomments

Pricing for any item is set by one thing: what people are willing to pay for it.
If a business raised prices because of tariffs, and consumers paid the higher price, that was a successful test that consumers are willing to pay that higher price for the item. Once that’s been established, the business has little incentive to lower prices once the tariffs go away. Prices only go down if competition with other companies pushes them down, but every player in a market has little reason to do so when they’re enjoying the higher profits.

by Scoundreller

1 subcomments

I’ve also sold things to US and pre-paid tariffs to my shipping broker.
I’m doubting myself or my buyer will be getting a refund.
Same for my buyer that bought items via eBay, paying the tariffs, through the EIS/eBay International Shipping service where the buyer pays for it and I ship the item to eBay in Canada whom trucks it over the border.

by pixelpoet

1 subcomments

It's almost as if electing a notorious conman to the highest office, for a second emboldening time, isn't such a great idea.
I'm sure America will learn from this and elect responsible leaders in future.

by eduction

0 subcomment

Businesses that raised prices to cover tariffs also saw reduced demand — axiomatically, that is what happens when you raise prices - and almost certainly made less total profit (since the rise went toward higher cost not margin expansion). I know we’re all supposed to be at each other’s throats these days but the tariffs were a shared burden.

by nekusar

0 subcomment

We can play the same at this game.
Im game at throwing $1000 in to Polymarket at the "Walmart CEO leaving the role in any method"
Im naturally not going to request anything unbecoming or illegal. Buuuuuuuuuuut im not going to frown either if if happens.
Prediction markets == assassination markets.

by 0xy

6 subcomments

This would be a valid concern if businesses got $1 in additional tariff costs and passed on $1 in price increases. This categorically did not happen, and businesses absorbed the vast majority of the blow through both stockpiling and taking the bullet.
Prime example is Mercedes. The RRP for post-tariff Mercedes vehicles was identical to the pre-tariff RRP.
Food prices also rose significantly less than the tariff increases.
Importantly, journalists in media, classically inept at any economic analysis, implied that 10% tariff = 10% RRP rise. They never corrected themselves, nor for the economists who falsely claimed the economy would collapse.
When you pay $10 for a widget at the store, the cost price of that widget is likely $2. A 10% additional tariff (if passed along fully, it wasn't) would mean the widget goes from $10.00 to $10.20.

by seqizz

0 subcomment

by ycombinatornews

6 subcomments