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mothballedyesterday at 2:19 PM9 repliesview on HN

... refunded to the importer of record. Not the people the costs were passed to. Essentially turning it retroactively into a tax to private businesses. This is the worst case of all scenarios for the consumer.


Replies

andyfilms1yesterday at 2:50 PM

I understand the frustration but I don't understand the logic. The businesses who paid the tariffs (who were literally sent an invoice that they paid) should be the ones refunded.

How would the government even be able to determine if a business increased product prices due to tariffs vs other factors, or even if the business increased prices at all? What if the product is a loss leader and the company was fine just eating the expense? Or what about a nefarious company who manufacturers their stuff in Canada but used "tariffs" as an excuse to increase prices? What would they be refunded from?

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mhbyesterday at 2:33 PM

Since the cost was probably split between reduced profit and additional customer cost, it seems pretty impractical to determine who is due a refund - end users or businesses. Or the logistics of refunds to customers.

One possibility would be for businesses to return the fraction of the tariff paid by customers to future customers by offering the items affected with a negative tax until the refund is used up.

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candiddevmikeyesterday at 2:21 PM

It's COVID PPP all over again... Expect more asset inflation.

giancarlostoroyesterday at 3:45 PM

One thing that should happen moving forward, whether we keep tariffs in one way or the other, we need consumer protection laws. I assume companies abused the "oh yeah you owe us for the tariffs" as a way to overcharge consumers. I think additional costs driven by tariffs should be 100% spelled out to the consumer next to where you're shown the tax amount. This should allow for auditing later if companies overcharge. It also would make "refunding" more reasonable, since you could show a receipt if technically you paid for a tariff, otherwise, if the company swallows it, they would show the amount but 'discount' or 'omit' it as something they are choosing to pay for. Without a paper trail I don't see how refunding any of this is feasible.

magicalhippoyesterday at 2:47 PM

> refunded to the importer of record. Not the people the costs were passed to

I mean the importers were the ones who paid the duties. It's not a given they passed it on, and if it was then in many cases it was spread out. That is importer paid for one container of items, which in turn got sold to individuals which the government has no record of.

If you ordered delivery by say FedEx and they paid the duty and passed it on to you, you should have a reasonable case to get it refunded from FedEx when they get the money back. Ideally they handle it automatically since they have all the necessary details.

For manufacturing companies it's less clear, as some might have swallowed all or some of the duties, and multiple components might have been affected by different rates etc.

Will be interesting to see how companies who passed it on will handle this, given it's a massive PITA to do anything but screw over their customers.

coldpieyesterday at 2:22 PM

Yet another successful Republican transfer of wealth from the people who do the work (employees) to the people who don't (owners).

bdangubicyesterday at 2:21 PM

that was the plan all along

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NuclearPMyesterday at 2:22 PM

Tax to businesses? You think the costs were only passed down once? Really?

adampunkyesterday at 2:30 PM

[flagged]

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