Greg Ip

So I think what we're seeing in IT and in tech right now really is a restructuring.

These layoffs are about, you know, cutting over here so we can spend the money on AI over there.

Norman Wright Mechanical Equipment Corporation is an HVAC equipment supplier based near San Francisco.

Richard Leo is the owner and CEO.

In other words, Leo's company is in the middle of that supply chain.

That means the manufacturers and importers he works with passed on plenty of tariff charges.

It also means that his company can't apply to the government for a tariff refund.

Leo could ask his suppliers for a refund, but that's kind of all he can do.

Plenty of companies are deciding to go for the money.

We did file immediately on the first day of the filing.

That's Peter Firth, the CEO of FFF Associates.

It imports fig paste from Turkey and Spain and sells it to manufacturers that make fig bars.

Firth says if and when he gets his refunds, he's planning on giving all of the money back to his customers.

To me, it's very clear I owe the money back to the customer.

And by the way, I need to tell you, my customers believe it's very clear to them as well.

They've already asked.

When First Company passed along the cost of tariffs to the food manufacturers that are its customers, the contracts broke out the tariff charges as separate line items and clearly stated that the charges were based on the current tariff rate.

And if it's based on the current tariff rate, if the tariff is struck down, then it seems obvious to us that it's owed back to them.

But not every business spelled out tariff charges so clearly.

Many simply raised prices and customers paid them.