I just heard in the news that the USA will pay back all the tariffs since they were declared illegal. Now the discussion is, that the Americans themself get the money back and not just the company's. This would mean that the Americans will have a lot of money to spend again and could be like the stimulus checks back in the day, getting the economy going and rising the prices of all assets as well.
What do you guys think, is this a likely possibility?
Is the tariff payback gonna pump the market?
byu/Salty_Ad_1754 ininvesting
Posted by Salty_Ad_1754
5 Comments
Probably not a big pump.
Those tariff refunds mostly go back to the importers/companies that originally paid them, not directly to consumers. So it’s more like improving corporate margins than sending stimulus checks to households.
Because of that, it’s unlikely to create the same kind of spending surge we saw during stimulus periods. At most it could be mildly bullish for some companies, but it’s not a major market catalyst.
American people aren’t getting the money back. The companies that paid the tariffs are.
I doubt that the consumer will see any of this. Also, don’t expect many companies to get the refund. The reports I am seeing is that if there is a problem with one item in the request, the whole request can be denied and not just the one line item.
It will improve earnings which will pump the market.
It’s not all tariffs. Only the ones imposed under IEEPA that the Supreme Court decided were “illegal”. And even then, there are stipulations and hoops companies have to jump through to get the refunds. I doubt individual Americans will see a dime from any of it.