Black leaders demand corporate accountability for $175 billion in tariff refunds

By Ashlee Banks
Special to the AFRO

As the federal government moves to distribute an unprecedented $175 billion in tariff refunds following a landmark Supreme Court ruling, a fierce debate has ignited over who will actually reap the financial rewards.

The looming refunds stem from the Feb. 20 Supreme Court decision in Learning Resources, Inc. v. Trump, which struck down broad-based tariffs imposed under the International Emergency Economic Powers Act. While the ruling mandates a massive economic correction, there is currently no clear legal mechanism to ensure the money is returned to the consumers who bore the brunt of the inflated costs during the trade war.

U.S. Rep. Steven Horsford (D-Nev.-04) is leading a strong campaign to ensure this massive economic windfall reaches working families and small businesses. The Nevada congressman told the AFRO that the money was taken “illegally based on Trump’s illegal tariffs.”

“These are taxes that the American people paid and the [$175 billion] is going to be returned,” said Horsford. “That money needs to go back to the people who paid it and that’s the American consumers, ultimately.”

On April 23, Horsford wrote a letter to the chief executive officers of 10 major companies: Walmart, Home Depot, Target, Best Buy, FedEx, Amazon, Lowe’s, Costco, UPS and DHL. Selected based on an analysis of likely top tariff payers and importers of record, these corporations are now facing direct questions about how the relief will be utilized.

“We want companies to tell us what process they are implementing to get the refund and to push it to the people who paid it,” Horsford told the AFRO. “Not corporate buybacks of stock, not CEO bonus pay, but to the people who paid the taxes through higher costs, whether it was hidden costs or direct costs that consumers ultimately paid.”

Rep. Horsford also emphasized the human cost of these policies, noting that large corporations have the resources to absorb losses, unlike the small community establishments that were forced to shutter. He highlighted the devastating impact on local businesses in his home state, noting that a neighborhood cupcake shop, brewery, and coffee roaster were forced to close because their costs skyrocketed due to the reckless tariffs. Horsford pointed out that while those businesses are gone, large corporations that weathered the storm are about to get their money back, questioning the fairness of this dynamic and demanding that the people who actually paid these costs be placed front and center.

The letter also poses six critical questions to the corporate leaders, demanding answers regarding their financial accountability and distribution plans. 

First, corporations must explain how they accounted for tariff costs and whether those costs were passed down to consumers or small suppliers. Second, the companies are asked to provide their timeline and mechanisms for translating tariff relief into lower prices or other direct benefits for consumers. Third, they must commit to tracking and verification to ensure funds do not go toward executive compensation or stock buybacks. Fourth, the companies must outline their commitments to publicly report on the distribution of the refunds. Fifth, they must detail the proportionate relief for small business vendors in their supply chain. Finally, if the relief is not passed to consumers, they must outline the steps they will take to ensure non-managerial workers benefit from the refund.

This effort is part of a broader campaign by Horsford, who has continually fought the administration’s trade agenda. His past actions include pressing U.S. Trade Representative Jamieson Greer on potential market manipulation, introducing legislation for automatic 90-day tariff refunds, and pushing a motion to force a direct vote on the RELIEF Act. 

Horsford is joined in this effort by the Congressional Black Caucus (CBC), which is amplifying his calls for transparency and accountability.

U.S. Rep. Glenn Ivey (D-Md.-04) told the AFRO that it is important to put pressure on the administration, otherwise “small businesses don’t have a real chance” of receiving money from the refund.

“Then everyday people don’t have a chance of receiving a refund at the moment either,” said the Maryland Congressman. “We need to fight to help both of those groups.”

CBC Chair Yvette D. Clarke (D-N.Y.-09) expressed deep concern over the lack of protection for everyday Americans. Following the release of Horsford’s letter, Clarke issued a statement pointing out that the administration promised to put hardworking families and small businesses first, but the trade war did the exact opposite by skyrocketing the cost of goods and services.

“The Congressional Black Caucus applauds Chair Emeritus Rep. Steven Horsford for his leadership and amplifies his calls for greater transparency and accountability for corporations that, without congressional action, could be the primary beneficiaries of these refunds,” wrote the chairwoman. “We cannot rely solely on the goodwill of corporations to look out for the average consumers who make their profits possible.”

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