Corporate America got billions of dollars in tariff refunds. Where’s your cut? The U.S. government has approved refunds totaling approximately $166 billion to companies that paid tariffs under former President Donald Trump’s trade policies, which were later invalidated by the Supreme Court. While major corporations like Apple, Amazon, and Nike have received substantial portions of these refunds—$2.2 billion, $600 million, and $300 million respectively—American consumers who faced higher prices due to these tariffs have seen little to no financial compensation. The refunds, which began flowing after the Supreme Court struck down Trump’s most contentious levies earlier this year, have sparked debates over how the costs of these policies were ultimately borne by the public. The Trump administration initially proposed a $2,000 tariff rebate program to distribute some of the collected revenue back to households, but the plan never materialized. Instead, the refund process has been limited to businesses and customs brokers that directly paid the tariffs. This means that individual consumers, who often absorbed the increased costs of goods, have no legal avenue to reclaim the money they paid. For example, if a customer purchased Nike sneakers at a higher price due to tariffs, they cannot claim a refund, as the company is not obligated to compensate them. The complexity of tracking how tariffs affected consumer prices further complicates the situation. During Trump’s second term, multiple rounds of tariffs were imposed, making it difficult to determine which specific levies contributed to price hikes. Additionally, many companies did not pass the full cost of tariffs to consumers, instead absorbing some of the burden themselves.#apple #nike #supreme_court #amazon #us_government
Inflation report expected to show prices eased before Iran war The U.S. government is set to release its February Consumer Price Index (CPI) report, which is anticipated to indicate a slight slowdown in inflation ahead of the Iran war. Analysts predict that overall inflation will rise by 0.3% from January, with year-over-year inflation remaining at 2.4%. Core inflation, which excludes volatile food and energy costs, is expected to decline to 0.2% month-over-month, down from 0.3% in January. This data, however, was compiled before the U.S. and Israel launched a large-scale attack on Iran on February 28, which significantly disrupted global energy markets. The conflict has led to the near-complete shutdown of the Strait of Hormuz, a critical waterway through which over 20% of the world’s oil supply passes. As a result, U.S. crude oil prices have surged more than 20% since the initial strikes, while retail gas prices have climbed over 50 cents. The war has also intensified uncertainty about the long-term impact on inflation, with experts warning that prolonged disruptions could drive oil prices to unsustainable levels. Bank of America economists noted that the February CPI report should continue to reflect relatively contained inflation, but they emphasized that the evolving geopolitical risks pose a greater threat to price stability. A prolonged conflict could lead to sustained higher oil prices, which would exert upward pressure on both headline and core inflation. JPMorgan Chase’s chief U.S. economist, Michael Feroli, warned that while a moderate oil price spike might not severely harm the economy, a sharp and prolonged increase—particularly if oil prices exceed $100 per barrel—could create a significant drag on growth.#iran_war #strait_of_hormuz #bank_of_america #us_government #jpmorgan_chase
