Businesses eligible for refunds on unconstitutional tariffs
The government has launched a refund process for companies impacted by tariffs that were ruled unconstitutional by the Supreme Court. FOX 10’s Andrew Christiansen hears from a Valley business owner who went through the process herself.
PHOENIX – Starting April 20, businesses can apply for refunds for tariffs they paid that were ruled unconstitutional by the Supreme Court.
What we know:
The refund only applies to companies that directly paid the tariffs. Companies or consumers who paid extra money on a product because of a tariff will not be able to apply.
Local perspective:
At DB Trucks, owner Sara Van Fleet says she has been paying tariffs on steel that comes from Mexico and products from China.
“They are significant. The tariffs obviously stack on top of themselves,” Van Fleet said. “The problem, the speed at which it came and the large numbers that came with it.”
Van Fleet said tariffs are stacking up to 98% at times.
“We tried to bear as much of the costs as we could but we certainly passed a good amount onto the customers just to keep the business going,” she said.
She applied for a refund on the first day, saying it was an easy process, and that she’s hopeful the refund will come through quickly.
Big picture view:
Estimates say about $166 billion was collected in tariffs that are now illegal, but not all of it qualifies for phase one of the refunds, which currently only covers more recent shipments.
Dig deeper:
Hitendra Chaturvedi, a professor of supply chain management at Arizona State University, said the tariffs hurt U.S. consumers more than trading partners. He added that such tariffs could sever the U.S.’s relations with other countries.
“The more you say I’m going to put tariff, the other party is going to look for alternatives,” Chaturvedi said.
Thomas Barr, vice president of strategic initiatives at Local First Arizona, which educates businesses on tariffs, said the refund system might not help smaller businesses.
“The unpredictability of the market. What is happening next? What is going to happen to your specific business on specific products that you source?” Barr said. “I’ve also talked to a lot of businesses that do not have all the documentation that is required to get reimbursed for the tariffs, so they’re going to have a really difficult time.”
What you can do:
Customs and Border Protection now has a website where companies can submit those applications.
What’s next:
There is currently no legal way for consumers to get their money back, though there is an ongoing lawsuit regarding customers trying to get their money back from Costco.
The Source: This information was gathered from Customs and Border Protection, the VP of a nonprofit supporting locally-owned businesses, and an ASU professor.
