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submitted 1 week ago by MicroWave@lemmy.world to c/news@lemmy.world

The majority of the sweeping tariffs Donald Trump imposed during his second term face one final litmus test that will determine whether he can continue to levy them – and also whether businesses are eligible for massive refunds.

That potentially dramatic turn in the tariff saga comes after a federal appeals court ruled on Friday that Trump unlawfully leaned on the International Emergency Economic Powers Act (IEEPA) to impose across-the-board duties on countries.

Trump had used those powers to push import tax rates as high as 50% on India and Brazil – and as high as 145% on China earlier this year.

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[-] omgboom@lemmy.dbzer0.com 68 points 1 week ago

Not only will the consumers never see a dime of any of the money if it's refunded, the companies aren't going to lower prices because you've already absorbed the price shock.

[-] whiwake@lemmy.cafe 25 points 1 week ago

Right. Everything today is about softening you up. They say, we will kill you—and you panic—then they roll it back to just losing an arm, and you’re happy about it.

[-] CmdrShepard49@sh.itjust.works 10 points 1 week ago

This is called "price anchoring" when used in business. They throw out an outrageously high number to start and then follow it up with something less to make it seem like a good deal when that was really the price they wanted all along.

[-] 13igTyme@piefed.social 4 points 1 week ago

Like a frog in boiling water.

[-] givesomefucks@lemmy.world 11 points 1 week ago

No, that's the ratchet effect.

A frog boil is when you slowly raise the temperature so the frogs don't even realize they're being boiled.

An example of frog boiling is having national guard just roam around not doing anything. People are pissed out of principle, but they're not really doing anything for people to riot over. By the time they are, some people will be used to it already and not as pissed as if it was all at once.

[-] whiwake@lemmy.cafe 3 points 1 week ago

Is that how frogs are cooked? Like a lobsters?

[-] don@lemmy.ca 8 points 1 week ago

It’s a common myth that frogs will stay in boiling water if the water is heated slowly enough. They can sense heat and will most definitely attempt to escape.

[-] Lost_My_Mind@lemmy.world 1 points 1 week ago
[-] don@lemmy.ca 4 points 1 week ago

No, they’ll still attempt to escape.

[-] mp3@lemmy.ca 1 points 1 week ago

The heavy lid of tariffs 😬

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[-] venusaur@lemmy.world 9 points 1 week ago

Yeah I feel like this was already expected or part of some master plan. The companies didn’t lose because they passed it on to the consumer and then they’re gonna get money on top of it.

[-] ericatty@infosec.pub 4 points 1 week ago

Ianal, I really hope there is some sort of class action that can be done to force companies to pass that back to consumers.

It should be easy enough to pass through to all the electronic pay methods.

Or force markup items to all be put on massive sale until an equal amount has been sold to make up the sales at markup.

There are no perfect solutions, some people will still make out like bandits.

But jfc, just releasing billions to these companies will only benefit the C-Level and maybe some shareholders, the people already benefiting, not the ones feeling the pain.

[-] ragebutt@lemmy.dbzer0.com 3 points 1 week ago

A class action just passes the money from one elite class (corporations) to another (class action lawyers). Consumers will get a virtual prepaid debit card for $1.97 in 5 years that can’t be spent anywhere because it can’t be used online and it costs $5 to have them mail you a physical card

Should get out guillotines

[-] Lucky_777@lemmy.world 1 points 1 week ago

100% this. Most I've ever seen out of a class action is somehwere between $5-$300. That's after you produce a mountain of receipts and paperwork. Only lawyers get rich.

[-] givesomefucks@lemmy.world 3 points 1 week ago

It also gives trump an out from "tarrif checks" he was talking about.

Likely the reason they started talking about those, is anticipation that they may be overturned. Now his supporters will be mad the "deep state" took "their checks" that they were never gonna get.

[-] PattyMcB@lemmy.world 1 points 1 week ago

See: the gas price jump in 2008-ish

[-] ALLGLORYTOHYPNOTOAD@lemmy.world 55 points 1 week ago

That money should go to us because the business passed the price increases on to us!

[-] MuskyMelon@lemmy.world 17 points 1 week ago

The businesses will raise a lawsuit that the money is theirs and you will lose again.

[-] 3abas@lemmy.world 17 points 1 week ago

And the prices won't go back down.

[-] Goretantath@lemmy.world 7 points 1 week ago

This exactly.

[-] jordanlund@lemmy.world 17 points 1 week ago

$200 billion / 330 million Americans = $606 each. More or less.

[-] pennomi@lemmy.world 8 points 1 week ago

Around $6000 to my small business. I’m sure the Supreme Court will side with Trump though.

[-] radiofreebc@lemmy.world 7 points 1 week ago

Small businesses, back of the line. Gotta make sure those billionaires don't lose out first.

[-] SpaceNoodle@lemmy.world 4 points 1 week ago* (last edited 1 week ago)

Wouldn't bring back the small businesses that have already been killed anyway. My favorite coffee shop just closed, and my independent artisan friends are barely selling anything any more.

[-] Chainweasel@lemmy.world 7 points 1 week ago

The Businesses didn't pay the tariffs, We did.

[-] Mobiuthuselah@mander.xyz 7 points 1 week ago

Was it not the end consumer who paid those tariffs?? Frankly, I'd rather it be given back to the business at least, but let's not pretend that they didn't extract it from their customers. End it so that other companies can't as easily gouge based on the idea of tariffs.

[-] hitmyspot@aussie.zone 4 points 1 week ago

Yes, the business just collected it. However, it would also depend on whether they upped their prices to do so.

[-] prole@lemmy.blahaj.zone 3 points 1 week ago
[-] hitmyspot@aussie.zone 2 points 1 week ago

Many (most?) did but not always like for like. This will have the double effect of making American manufacturing less attractive as your competitive edge due to tariffs could evaporate. It also means importers will pass it on straight away as it's clear to consumers that it's a government tax. Moreso as we go on. Previously, the uninformed thought the tariffs were not paid by consumers.

[-] nocturne@slrpnk.net 1 points 1 week ago* (last edited 1 week ago)

Was it not the end consumer who paid those tariffs?

It is whomever imported the item that pays. If you order directly from a tariffed country you pay. If American_Business_01 imports stuff they pay, they then either eat the tariff, raise their price to retailers and distribution (this is what is happening in the non-video game industry). Some businesses are raising MSRP and spreading the tariff between themselves, distribution, retailers, and consumers. Some companies are trying to dump it all on retailers by not raising msrp.

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[-] rhvg@lemmy.world 6 points 1 week ago

No worries , you have a supreme court good at ruling by vibe.

[-] cabron_offsets@lemmy.world 6 points 1 week ago* (last edited 1 week ago)

Republicans are so fucking stupid. They imposed a stupid tax on all of us.

[-] Formfiller@lemmy.world 5 points 1 week ago

When do Trump and the magats drink the poison koolaid? I’m getting impatient

[-] resipsaloquitur@lemmy.world 5 points 1 week ago

He’s already spent it on bling from Kohl’s.

[-] inclementimmigrant@lemmy.world 4 points 1 week ago

Yeah F that.

American consumers need to get the refund, not the corporations.

[-] crystalmerchant@lemmy.world 3 points 1 week ago

Those businesses will never see a goddamn cent

[-] DaddleDew@lemmy.world 2 points 1 week ago

Cool. Can other countries sue for the damage it caused to their industries as well?

[-] einlander@lemmy.world 2 points 1 week ago

Don't worry, the supremes will make it all go away.

[-] pelespirit@sh.itjust.works 2 points 1 week ago

The money will go back to American businesses, which means American consumers. That means that's more proof that Americans are paying for the tariffs.

[-] Peruvian_Skies@sh.itjust.works 6 points 1 week ago

Not a single cent will go to American consumers. If the American companies win this lawsuit (and don't get me wrong, they should), they will keep the money and will not lower their prices even after the tariffs are removed.

[-] pelespirit@sh.itjust.works 2 points 1 week ago

Oh for sure, I'm just saying that the money going back to American businesses proves that this isn't hurting foreign companies and we're paying for the tariffs.

[-] thefluffiest@feddit.nl 2 points 1 week ago

Thanks CNN. Now the Supreme Court justices know their asking price

[-] lemmysquezzy@lemmy.world 1 points 1 week ago

Can you imagine having to refund ~6 months of US Imports? The paperwork alone would take years. Each entry would have to be re-verified with customs. Not to mention the staffing increase for CBP to process the refunds. I don't see SCOTUS not enforcing this.

[-] Witchfire@lemmy.world 1 points 1 week ago

Or else what?

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this post was submitted on 03 Sep 2025
135 points (99.3% liked)

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