Would a Tariff Rebate Make Sense?

To some extent, yes. A rebate would permit the country to enjoy the benefits of protectionism–the encouragement of local industries–without damaging the interests of consumers too much. It would be similar to cutting income taxes to offset the drag created by the adoption of a carbon tax.

But in this particular set of circumstances, it would increase the already swollen deficit and cause interest rates to rise. The tariff was supposed to be part of the fiscal mitigation for the BBB; now, that function would be gone. On the whole, therefore, it would be a mistake, which is why Bessent and lots of Republicans in Congress aren’t enthusiastic.