How Are Firms Using Their Tariff Refunds?

How Are Firms Using Their Tariff Refunds?

Textbook analyses suggest that firms keep one-off windfalls as cash, distribute the funds to shareholders or, if liquidity-constrained, perhaps use the funds to support the firm's investment

Most Businesses Receiving Tariff Refunds are Holding Onto the Cash

More than $134.7 billion in refund payments, including interest, has been paid out or accepted for processing.

Fed Study: 75% of Firms Keeping Cash from Tariff Refunds

A Federal Reserve Bank of Atlanta survey found that most companies receiving tariff refunds expect to retain at least some of the money as cash, though more than half also plan to direct a portion toward R&D or capital investments. We detail the findings here.