Opinion: Losing Money Is Safer Than Challenging the President

The Tariff Refund Dilemma and Political Implications

After the Supreme Court ruled that emergency tariffs imposed following President Trump’s 2025 inauguration were unlawful, the government swiftly agreed to refund the wrongly collected tariff revenue. However, some major U.S. companies, especially Amazon, have chosen not to claim their refunds. This decision is likely not due to a lack of interest in the billions of dollars they are owed but rather a strategic calculation that requesting the money might draw the president's disfavor, potentially leading to greater losses.

President Trump has openly encouraged this behavior. In April, he told CNBC’s “Squawk Box” that it would be “brilliant” if companies opted out of seeking refunds. “If they don’t do that, I’ll remember them,” he said, adding a chuckle — a common reaction when making statements that should raise concerns. Nevertheless, his first year in his second term has provided ample evidence that he is serious about using his power to reward allies and target opponents.

Executive Actions and Political Favoritism

Several executive actions under Trump's administration highlight his willingness to use governmental powers for political gain. For instance, executive orders directed federal agencies to cancel contracts and suspend security clearances for law firms representing his adversaries. The Federal Communications Commission (FCC) has also been involved in politically motivated investigations of networks that have drawn Trump’s ire, such as its approval of Paramount’s Skydance merger after the company settled with Trump for $16 million.

Additionally, the Treasury Department has shown a pattern of imposing and lifting sanctions based on political considerations. These actions, along with the president's "carrot-and-stick approach" in pardoning allies while targeting opponents, demonstrate a broader trend of leveraging executive authority for political purposes.

Corporate Strategy and Ethical Concerns

The strategic response from corporations like Amazon is troubling, though not entirely unexpected. Companies rarely donate to political campaigns out of altruism; instead, they often seek to reward political or financial allies. This practice is not new — historical examples include the Adams administration's use of the Sedition Act to prosecute critics and Nixon's White House counsel suggesting the use of federal machinery to undermine political enemies.

However, when politically motivated enforcement of the law becomes evident, it sparks public outrage. Most Americans expect a government that is impartial, even if inefficient. If President Calvin Coolidge was right that “the chief business of the American people is business,” then the decision by Amazon and others to forgo their refunds reflects a concerning shift in our political and legal culture.

The Broader Impact on the Economy

While complaints about American litigiousness are common, the rule of law is a cornerstone of the U.S. economy. The country's economic success is largely due to a relatively stable, fair, and predictable system that supports business operations. Foreign investment, contract enforcement, and entrepreneurial risk-taking all rely on the belief that outcomes are determined by law and market forces, not political relationships.

When this belief erodes, the consequences are both civic and economic. The current situation raises questions about the integrity of the legal system and the role of political influence in business decisions.

The Importance of Knowing the Ruler

President Trump’s comment that companies not filing for refunds “have to know [him] very well” underscores a dangerous reality. When knowing the ruler becomes more valuable than understanding the market, the chief business of America shifts toward cultivating government favor. If businesses profit more from pleasing the ruler than serving customers, the result is a system where the ruler's preferences dictate outcomes — on our shelves and on our screens.

Molly Nixon is a senior fellow in Executive Power at the Cato Institute.