Companies begin collecting tariff refunds following Supreme Court decision
After the Supreme Court struck down the Trump administration’s “Liberation Day” tariffs, the big question was whether companies would get their money back. Now, officials say the payouts are starting.
The first wave of tariff refunds is expected to hit bank accounts on Tuesday, with companies like Walmart, Target, and Nike expected to receive billions.
Others, including General Motors and Macy’s, are looking at hundreds of millions.
Regarding American consumers, the tariffs cost the typical American household $700 last year.
Companies apply for refunds
Last month, the federal government launched an online portal, where companies could file to get money back for the tariffs the Supreme Court ruled were illegal.
ABC News reports at least 330,000 importers paid the tariffs, and as of late April, more than 75,000 businesses applied for refunds.
Officials say around 15% have been rejected, mostly for paperwork issues or ineligible shipments.
How does this affect consumers?
Many of the companies say they will use the refunds, not to refund customers, but to pay down debt, rehire employees, restock inventory or potentially lower prices.
UPS, DefEx and DHL, however, have said they will refund customers for packages that were subject to the tariffs.
President Donald Trump pushed back over the weekend, criticizing the ruling and the two justices he appointed.
On Truth Social, he said the decision will cost the U.S. billions and argued the court could have blocked the refunds.
“Their decision on Tariffs cost the United States 159 Billion Dollars that we have to pay back to enemies, and people, companies, and Countries, that have been ripping us off for years,” Trump wrote.
He also said he has “another way of doing tariffs,” but called it “far slower, and more laborious than what was just determined.”
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Ella Rae Greene, Editor In Chief
