Both parties in the U.S. support it! "Tariff Refunds" become "Universal Payments"?

After losing the tariffs case at the Supreme Court, Democrats are calling for the full refund of tariff revenues to American families, a stance that actually aligns with Trump’s previous proposal of tariff “dividend” checks.

On Monday, February 23, prominent Democratic senators Elizabeth Warren, Sherrod Brown, and others urged the Trump administration to fully refund tariffs, depicting tariffs as the main culprit driving inflation and blaming Republicans for it.

Brown stated on social media that they are demanding a $1,336 refund per household in Ohio, while potential 2028 presidential candidates like California Governor Gavin Newsom and Illinois Governor J.B. Pritzker are calling for refunds of $1,700 or more per household.

Top Senate Democrats announced legislation on Monday to fully refund approximately $175 billion in tariffs imposed by Trump that were overturned by the court, plus interest. The bill requires companies receiving refunds to pass the money on to consumers, but it is non-binding.

Trump’s position is more complex. He has initiated a new 15% global tariff to replace the tariffs struck down by the Supreme Court, and has indicated that refunds could be delayed for years in court.

However, Wall Street Insights noted that Trump previously pushed for months to distribute $2,000 tariff “dividend” checks to low- and middle-income families, despite lukewarm reactions from congressional Republican leaders.

Tariffs Become a Political Focus in Election Year

Analysts believe the tariff issue is expected to play a significant role in Senate races in key battleground states such as Ohio, Maine, Alaska, and Iowa.

Expenditure in Ohio’s Senate race is expected to reach hundreds of millions of dollars, crucial for Democrats to regain control of Congress. Progressive Democrat Sherrod Brown, after losing his 2024 bid, took the lead in efforts to return to the Senate.

In a Monday social media post, he directly linked tariffs to inflation and targeted his opponent, Republican Senator Jon Husted:

Jon Husted has supported these tariffs. Ohioans are being crushed by rising prices, and they deserve their money back.

Husted, the current Republican senator from Ohio, previously posted on social media:

Today, the Supreme Court has spoken. In the United States, even if we disagree, we respect the rule of law.

Bernie Moreno, who defeated Brown in the 2024 Senate race, responded by criticizing Brown for supporting tariffs for decades and now opposing them. Moreno stated at the Capitol:

Democrats used to be the party supporting tariffs because they were the party of the working class.

Moreno is pushing for Congress to codify higher tariffs into law and use the revenue to fund other priorities, such as making middle-class tax cuts permanent, but such legislation is unlikely to pass Congress this year.

Democratic Governors and Senators Call for Immediate Refunds

Several Democratic governors have also joined the call for refunds.

California Governor Gavin Newsom and Illinois Governor J.B. Pritzker, both potential 2028 presidential candidates, are demanding refunds of $1,700 or more per household. Newsom wrote:

Every dollar illegally collected must be immediately refunded, with interest, and paid back!

Pritzker directly sent a bill of $8.6 billion to Trump, equivalent to about $1,700 per household in Illinois. Senator Elizabeth Warren posted on social media:

Trump stole your money through illegal tariffs. You’ve paid higher prices on everything from housing to groceries. It’s time for Trump to pay back.

Trump Promotes Tariff “Dividend” Checks

The idea of returning at least part of the tariff revenue to American families is itself a populist concept previously advocated by Trump.

Wall Street Insights mentioned that Trump actively promoted issuing $2,000 tariff “dividend” checks to low- and middle-income families, though congressional Republican leaders responded coolly.

While importers are preparing to fight in court to recover billions paid, analysts believe the likelihood of Congress taking action remains low.

House Ways and Means Committee Chairman Jason Smith told the media on Monday:

I don’t think Congress will have a way to issue refunds.

Oversight agencies like the Responsible Federal Budget Committee worry that with the annual deficit nearing $2 trillion, Trump’s last year’s “dividend” proposal could cost billions annually.

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