"Federal regulations outline that in the case of an overpayment for duties, including those determined to be illegal, those payments must be returned with interest. U.S. Customs and Border Protection (CBP) outlines this interest compounds daily at an annualized rate of 4.5% for overpayments more than $10,000 and 6% on overpayments less than that."
"A Federal Reserve Bank of New York report released last month confirmed the suspicions from American firms and consumers that they were the ones paying for the vast majority-indeed about 90%-of the tariffs Trump imposed under the International Emergency Economic Powers Act (IEEPA) last spring. The Yale Budget Lab calculated that IEEPA tariffs cost American households between $1,300 to $1,700 annually."
"Consumers will be the biggest losers here, assuming refunds happen, because it's not going to be a one-for-one. And since consumers are taxpayers, they will shoulder the burden of accruing interest on the $175 billion in tariff revenue held in the Treasury."
The Supreme Court ruled much of President Trump's tariffs illegal, but $175 billion in collected tariff revenue remains in the Treasury accruing interest. Federal regulations mandate that overpayments on duties, including illegal ones, must be refunded with interest compounding daily at 4.5% for amounts over $10,000 and 6% for smaller amounts. This accumulating interest costs taxpayers approximately $700 million monthly. A Federal Reserve Bank of New York report confirmed that American consumers bore about 90% of the tariff burden, with Yale Budget Lab calculations showing households paid $1,300-$1,700 annually. Even with refunds, consumers will not receive full reimbursement and will continue facing tariff costs.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]