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Wall Street buying potential Trump tariff refunds for pennies on the dollar
U.S. companies sell rights to potential tariff refunds for immediate cash, with investors betting on a Supreme Court ruling that could total over $100 billion in refunds.
- On Dec 23, some U.S. companies began selling rights to potential government tariff refunds to outside investors ahead of a Supreme Court case, with a Jefferies LLC division brokering at least one sale to a Boston-based hedge fund.
- To hedge slow reimbursements, firms sought buyers as Orrick saw demand for refund claims soon after April tariffs; Kids2's CFO called the trades a 'cost recovery action' due to lengthy delays.
- Atlanta-Based Kids2 accepted a sale of its claim, recovering $2 million of $15 million paid through September despite making 95% of its products in China.
- More than $100 billion in potential refunds could overwhelm U.S. Customs, as the high court may take months to rule, leaving companies uncertain about timing and payout speed.
- Wall Street created a secretive market for tariff refund rights, with rates quoted as 16-17% for fentanyl claims and 26-28% for reciprocal claims, while Bissell expressed skepticism about government responses.
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Wall Street buying potential Trump tariff refunds for pennies on the dollar
KEY TAKEAWAYS: Companies sell potential tariff refund rights for upfront cash Hedge funds bet on Supreme Court overturning Trump tariffs Kids2 received fractions of tariffs paid to manage cash flow risk Market emerges for trading claims tied to high court decisions Some U.S. companies are hedging their bets on the Supreme Court case against President Donald Trump’s sweeping emergency tariffs by selling their rights to collect potential g…
Wall Street buying potential Trump tariff refunds for pennies on the dollar
Some U.S. companies are hedging their bets on the Supreme Court case against President Donald Trump's sweeping emergency tariffs by selling their rights to collect potential government refunds of the taxes to outside investors.
·United Kingdom
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Coverage Details
Total News Sources6
Leaning Left1Leaning Right1Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 16%
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