By Admin 
US Trump Tariffs: US President Donald Trump suffered a major setback when the Supreme Court of the United States declared several high import duties (tariffs) imposed by him invalid. Through these tariffs, the US administration had collected revenue of about 134 billion dollars. Now the biggest question is to whom and how will this amount be returned?
The tariff was not a tax collected directly from ordinary American citizens. This was a duty imposed on imported goods, which was paid to the Customs Department by companies importing goods into America, such as Walmart and Costco. That means they were legally paying companies. However, in practice, companies add this additional cost to the prices of their products, leaving the ultimate burden on consumers.
For example, if a 15% tariff was imposed on an electronic item, the importing company paid that duty to the government, but later collected it from the consumer by increasing the price in the same proportion.
Who will get refund?
From a legal point of view, refund is given only to the entity which has made the payment to the government. Since the customs duty was paid by the companies, if the refund process starts then it will be given to the companies only and not directly to the consumers. It is not possible to make direct payments to consumers because they do not pay any direct taxes to the government.
The refund process is not easy. Companies will have to prove how much tariff they had deposited during which period and which falls in the invalid category under the court’s decision. After this there will be review by customs authority, documentary investigation and legal procedures. This may also include the issue of interest payment.
How much time can it take?
President Trump has indicated that the entire process may take up to five years. The reason is that thousands of companies and crores of import transactions will have to be reviewed. Apart from this, the government can also see whether the earlier revenue can be compensated by implementing new tariffs under any alternative legal provision. Impact on consumers: Even if companies get refunds, it is not necessary that they return the amount to consumers.
Companies can use that money to cover their losses, strengthen their balance sheet or invest in future investments. Therefore, the possibility of the general public getting a direct refund is considered very low.
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