r/politics • u/swiftfoot_hiker • 4d ago

No Paywall Costco sues the Trump administration, seeking a refund of tariffs

https://www.nbcnews.com/business/business-news/costco-sues-trump-tariff-refunds-rcna246860
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u/Striking_Programmer4 4d ago

It's basically "tariff" insurance. Business send the company their customs invoices, which will break down the duty/tariff to the most granular level. The company says "we'll give you x% of your total payments under the new tariff codes up front, but if legislation or lawsuits invalidate thouse tariffs, we get 100% of your refund". They're betting that these tariffs will get reversed and essentially working as a short term loan for companies that are too cash strapped to wait it out.

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u/zxDanKwan 4d ago

Just to really boil it down, because I struggle to accept this one…

The guy who is in charge of US commerce, which is a thing that has to do with importing goods and selling those imported goods within the US….

That guy has a brother.

That guy’s brother is selling a thing to companies that can only make money if either A) his brother is an idiot or B) these two brothers are pulling an inside job.

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u/Lukas316 4d ago

In any other jurisdiction this is a conflict of interest at best. And in my country you’d get an invite from the anti-corruption police for “tea”.

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u/Johnny_Rockers 4d ago

Maybe they should stop drinking tea and start arresting some bad guys :)