Better is to use it to subsidise other imports for which the import country is a price taker. The classic one would be oil and gas. Import tariffs free up import space which should be used wisely.
It seems like that using import tariff duties to subsidize more imports would encourage more importation of goods by lowering the final cost to the end user. It would also likely just directly benefit the domestic importers and the foreign exporters. It would also further exacerbate the differential over domestic producers and domestic alternatives and do nothing to prevent economic/labor regulation arbitrage.
Here's an analysis that raises it in the context of the broader problem: https://new-wayland.com/blog/the-uk-energy-crisis-mmt-analys...