Hiltzik: Why consumers won't see a tariff refund - Los Angeles Times

Los Angeles Times

by Michael Hiltzik

February 24, 2026

AI-Generated Deep Dive Summary

The Supreme Court has ruled that most of former President Donald Trump's tariffs are unconstitutional, but consumers are unlikely to receive refunds for the billions paid since their implementation. While the court’s decision invalidating the tariffs under the International Emergency Economic Powers Act (IEEPA) was clear, the process for refunds remains uncertain. Treasury Secretary Scott Bessent suggested that refunds are improbable, citing potential legal challenges and the complexity of calculating reimbursements. This leaves consumers in limbo, as the government has collected an estimated $135 billion to $170 billion in tariffs since their introduction. The article highlights the economic burden on American consumers, with nearly all tariff costs falling on U.S. importers and their domestic clients. Tariffs are essentially a tax on domestic consumers, with evidence showing that 96% of the tariffs’ impact is felt by Americans rather than foreign exporters. This undermines Trump’s promise of “tariff dividend” checks, which were proposed but largely dismissed as political stunts. The uncertainty surrounding refunds has also created confusion in U.S. trade relations and domestic business decisions. Trump’s recent announcement to reimpose tariffs under different laws further complicates the situation, potentially prolonging litigation and adding to market instability. The stock market reacted negatively to this news, with major indices dropping significantly following Trump’s renewed focus on tariffs. Overall, the decision has left consumers without immediate relief, despite the court’s ruling. The lack of a clear refund process and ongoing legal challenges ensure that the economic impact of these tariffs will continue to affect American businesses and households for years to come. This highlights the broader implications of trade policy decisions on domestic economics and consumer welfare, making it a critical issue for anyone following U.S. news and economic developments.

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Originally published on Los Angeles Times on 2/24/2026