Earlier quoted context omitted.
Such a tariff could be made more economically neutral if the tariff proceeds were distributed to citizens as a dividend too.
You'd still get deadweight losses. Easier to image with a 1,000,000% tariff: nobody would actually pay the tariff, so there's no dividend to distribute. Yet, you get an economic impact.
no one is suggesting that tariff level though so it's a pretty much unrealistic value to work throuh.