Consumers can’t count on getting their tariff money back
Consumers who have been paying import tariffs for months could face major hurdles in getting refunds, even after the Supreme Court ruled that the tariffs were collected illegally.
Large companies, including Costco, have already sued the government to recover tariff payments. Experts now predict a wave of class action lawsuits seeking up to $200 billion in refunds from tariffs imposed under authority the Supreme Court invalidated in a 6-3 decision that angered President Trump.
“Is the average American going to be able to afford to sue the government? It’s a costly exercise,” said Andrew Hale, a trade expert at the conservative think tank Advancing American Freedom. He added, “How do you quantify that? Was this money paid by U.S. importers who absorbed some costs and passed others to consumers? Sorting it out will be very difficult.”
Costco filed suit in December in the U.S. Court of International Trade to recover tariff payments, even before Trump’s use of the International Emergency Economic Powers Act of 1977 was struck down. That lawsuit—and thousands of similar claims from other businesses—was paused pending the Supreme Court decision.
Treasury Secretary Scott Bessent criticized the lawsuit last month, asking, “Costco, who’s suing the U.S. government, are they going to give the money back to their clients?” Minority Democrats on the Joint Economic Committee estimated that each American household paid an average of $1,700 in tariffs, with monthly costs hitting $209 in January. President Trump has defended the tariffs, saying the revenue helps the government and strengthens U.S. negotiating leverage with other countries.
Hale suggested the government create an online system for consumers to file tariff refund claims and noted that companies are already eager to secure contracts to manage such a system. Small businesses fear they could be left out.
Shoppers in New York on Saturday expressed skepticism about getting any refunds. “I don’t see any route where that money actually is given back to the consumer. If anything, it’s going back to the businesses,” said Ali Aoun, 29, who works in children’s publishing.
Joshua North, 42, a photographer stocking up on supplies before the storm, agreed. “The corporations will get it; the regular taxpayer is not going to see that money,” he said, citing a friend’s bride who paid an extra $400 on a $4,000 wedding dress last year.
Even as prices remain high, many consumers continue to buy goods, leaving businesses little incentive to lower costs. “The prices are still going to stay high because people are still buying stuff, even though the prices are high. And so the consumer is screwed,” Aoun added.
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