The Trump administration finally started accepting applications for refunds for the president’s illegal tariffs. But like everything this administration touches, large corporations stand to benefit the most. American consumers, workers and small businesses who bore the brunt of the tariffs are being left out in the cold.
Trump’s tariffs have been chaotic from the start. More than a year after he slapped tariffs on every major trading partner, it’s clear that they didn’t produce any of the results that he promised. Our debt is at a record high, we are losing manufacturing jobs, farmers are struggling to make ends meet and they haven’t produced a single meaningful trade agreement.
All while Americans pay higher and higher prices. Hardly the new “golden age” that Trump has tried to convince us we are privileged to be living through.
Thankfully, the Supreme Court stepped in and put an end to his illegal tariffs. But rather than work to fix his mistakes, Trump has doubled down by planning more tariffs and threatening to punish anyone that dares to seek a refund. His administration continues to deny the reality that Americans have paid higher prices, proving how out of touch they are and that they don’t plan on compensating Americans for the past year. While Trump may try to shout his golden age into existence, no amount of magical thinking is going to solve the economic malpractice that he has committed.
It’s clear that Republicans in Congress are afraid to stand up to President Trump, so once again it falls on Democrats to come up with a solution for working families.
First, refunds shouldn’t just go to corporations. Yes, they paid the bulk of the tariffs initially but then passed those costs on to consumers in the form of higher prices, forcing families to pay $2,000 more in the past year.
Americans deserve to get their money back. And those who disproportionately paid more because of the tariffs – working- and middle-class families – should receive the bulk of the refunds. The president and his billionaire buddies who barely noticed the price increases don’t need a refund check. Families that felt the squeeze every month do.
Second, Congress must stand up for the American workers and farmers who have been left behind by Trump’s failed policies.
Trump promised American workers that his trade wars would bring back manufacturing jobs and rebuild entire industries. That didn’t happen.
Instead, American businesses that rely on imported materials saw their costs spike and their supply chains disrupted. Some froze hiring. Others laid off workers. Rather than leading to a manufacturing boom, we have lost more than 100,000 manufacturing jobs under Trump.
In contrast, Democrats believe in investing in American workers, not using them as political props. That means strengthening job training and apprenticeship programs, making serious investments in manufacturing, and renewing Trade Adjustment Assistance – a vital program to help American workers get back on their feet that Republicans allowed to expire.
Workers harmed by Trump’s trade wars need more than slogans and empty promises. They need a real path forward. And they deserve to be compensated and supported for the job losses they unfairly suffered over the past year under Trump’s failed trade policies.
Finally, Congress must protect small businesses.
Large corporations have the resources to absorb the higher costs, challenge the president’s tariffs in court or now navigate a complicated refund process. They do not need another handout from Congress. And corporations must be held accountable. They shouldn’t be allowed to use their refunds to pad their profits while continuing to keep their prices high for hardworking Americans. If corporations receive tariff refunds, then they must also lower prices for consumers.
But small businesses do not have the same resources. Many paid higher prices for raw materials and equipment and had no choice but to eat the losses or pass them along to their customers. The refund process should be automatic for small business owners. Instead, the Trump administration has put the onus on small businesses to apply directly through an incredibly difficult system to navigate.
Trump promised strength and prosperity from his trade wars. Instead, he delivered chaos, higher prices and greater economic uncertainty.
Congress has both the authority and the obligation to act. Democrats are ready to make American families whole, support American workers, stand up to corporations and fight for small businesses. It’s time for Republicans to stop cowering to the president and join us.
Linda Sánchez represents California’s 38th congressional district and is the Ranking Member of the House Ways and Means Subcommittee on Trade.