this post was submitted on 05 Mar 2026
53 points (100.0% liked)

Economics

1088 readers
96 users here now

founded 2 years ago
 

Economists have warned that slow-walking the rebates for President Donald Trump’s now-defunct emergency tariffs could result in high costs for the government, given the interest that is accruing on revenues from the illegally collected duties.

On February 20, the Supreme Court ruled that the president was unable to impose tariffs under the International Emergency Economic Powers Act (IEEPA), which had been invoked for the majority of Trump’s global duties.

And according to a new analysis from the free-market-oriented Cato Institute, interest is compounding on the estimated $175 billion owed to importers at a rate of $20 million per day, or $700 million per month.

you are viewing a single comment's thread
view the rest of the comments
[–] Kernal64@sh.itjust.works 12 points 23 hours ago (3 children)

From the article:

“If the government were to drag out refund lawsuits until the end of the president’s term, as he recently suggested, taxpayers would owe importers about $25 billion more,” their report reads.

I'm just a simple ~~country lawyer~~ suburban working stiff, but this seems absolutely insane to me. These companies all passed the tariff costs onto us, the customers, yet they're the ones getting the refunds?! That is maximum level bullshit, IMO.

Also, the assumption that The Fanta Menace is actually going to abide by a court ruling for the first time ever is hilarious. I'm pretty sure he announced a 15% global tariff when the decision was announced, and unless I missed it, no one has made him stop.

[–] Railcar8095@lemmy.world 7 points 19 hours ago (1 children)

Here is the fun fact: they get the refunds, and the tax payers pay the interests.

[–] Kernal64@sh.itjust.works 1 points 19 hours ago

They get us coming and going. 😡

[–] zikzak025@lemmy.world 2 points 20 hours ago

It's almost like tariffs are just a shitter, messier form of consumer tax with almost zero accountability. If only people were discussing this issue before the tariffs were put in place...

[–] Lawnman23@piefed.social 2 points 20 hours ago

Wonderful system isn’t it? Rich get richer and the poor stay poor. ‘merica!

/s Sigh…